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MILLIMETERS
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ujmaoM, cavt>o ru \ap&>tA
A SELECTIVE MICROFILM EDITION
PART IV
(1899-1910)
Thomas E. Jeffrey
Lisa Gitelman
Gregory Jankunis
David W. Hutchings
Leslie Fields
Theresa M. Collins
Gregory Field
Aldo E. Salerno
Karen A. Detig
Lorie Stock
Robert Rosenberg
Director and Editor
Sponsors
Rutgers, The State University Of New Jersey
National Park Service, Edison National Historic Site
New Jersey Historical Commission
Smithsonian Institution
University Publications of America
Bethesda, MD
1999
Edison signature used with permission of McGraw-Edison Company
Thomas A. Edison Papers
at
Rutgers, The State University
endorsed by
National Historical Publications and Records Commission
18 June 1981
Copyright © 1999 by Rutgers, The State University
All rights reserved. No part of this publication including any portion of the guide and index or of
the microfilm may be reproduced, stored hi a retrieval system, or transmitted hi any form by any
means— graphic, electronic, mechanical, or chemical, hicludhigphotocopyhig, recordhigor taphig,
or information storage and retrieval systems— without written permission of Rutgers, The State
University, New Brunswick, New Jersey.
The original documents hi this edition are from the archives at the Edison National Historic Site
at West Orange, New Jersey.
ISBN 0-89093-703-6
THOMAS A. EDISON PAPERS
Robert A. Rosenberg
Director and Editor
Thomas E. Jeffrey
Associate Director and Coeditor
Paul B. Israel
Managing Editor, Book Edition
Helen Endick
Assistant Director for Administration
Associate Editors
Theresa M. Collins
Lisa Gitelman
Keith A. Nier
Research Associates
Gregory Jankunis
Lorie Stock
Assistant Editors
Louis Carlat
AJdo E. Salerno
Secretary
Grace Kurkowski
Student Assistants
Amy Cohen
Bethany Jankunis
Laura Konrad
Vishai Nayak
Jessica Rosenberg
Stacey Saelg
Wojtek Szymkowiak
Matthew Wosniak
BOARD OF SPONSORS
Rutgers, The State University of New National Park Service
Jersey John Maounis
Francis L. Lawrence Maryanne Gerbauckas
Joseph J. Seneca Roger Durham
Richard F. Foley George Tselos
David M. Oshinsky Smithsonian Institution
New Jersey Historical Commission Bernard Finn
Howard L. Green Arthur P. Molelia
EDITORIAL ADVISORY BOARD
James Brittain, Georgia Institute of Technology
R. Frank Colson, University of Southampton
Louis Galambos, Johns Hopkins University
Susan Hockey, University of Alberta
Thomas Parke Hughes, University of Pennsylvania
Peter Robinson, Oxford University
Philip Scranton, Georgia Institute of Technology/Hagley Museum and Library
Merritt Roe Smith, Massachusetts Institute of Technology
FINANCIAL CONTRIBUTORS
PRIVATE FOUNDATIONS
The Alfred P. Sloan Foundation
Charles Edison Fund
The Hyde and Watson Foundation
National Trust for the Humanities
Geraldine R. Dodge Foundation
PUBLIC FOUNDATIONS
National Science Foundation
National Endowment for the
Humanities
National Historical Publications and
Records Commission
PRIVATE CORPORATIONS AND INDIVIDUALS
Alabama Power Company
Anonymous
AT&T
Atlantic Electric
Association of Edison Illuminating
Companies
Battelle Memorial Institute
The Boston Edison Foundation
Cabot Corporation Foundation, Inc.
Carolina Power & Light Company
Consolidated Edison Company of New
York, Inc.
Consumers Power Company
Cooper Industries
Corning Incorporated
Duke Power Company
Entergy Corporation (Middle South
Electric System)
Exxon Corporation
Florida Power & Light Company
General Electric Foundation
Gould Inc. Foundation
Gulf States Utilities Company
David and Nina Heitz
Hess Foundation, Inc.
Idaho Power Company
IMO Industries
Internationa] Brotherhood of Electrical
Workers
Mr. and Mrs. Stanley H. Katz
Matsushita Electric Industrial Co., Ltd.
Midwest Resources, Inc.
Minnesota Power
New Jersey Bell
New York State Electric & Gas
Corporation
North American Philips Corporation
Philadelphia Electric Company
Philips Lighting B.V.
Public Service Electric and Gas Company
RCA Corporation
Robert Bosch GmbH
Rochester Gas and Electric Corporation
San Diego Gas anti Electric
Savannah Electric and Power Company
Schering-Plough Foundation
Texas Utilities Company
Thomas & Betts Corporation
Thomson Grand Public
Transamerica Delaval Inc.
Westinghouse Foundation
Wisconsin Public Service Corporation
217
A Note on the Sources
The pages which have been
filmed are the best copies
available. Every technical
effort possible has been
made to ensure legibility.
PUBLICATION AND MICROFILM
COPYING RESTRICTIONS
Reel duplication of the whole or of
any part of this film is prohibited
In lieu of transcripts, however,
enlarged photocopies of selected
items contained on these reels
may be made in order to facilitate
research.
National Phonograph Company Records
Correspondence, Domestic (1909)
This folder contains correspondence and other documents relating to the
commercial exploitation of phonographs in the United States. Most of the items
are letters to and from Frank L. Dyer, president of NPCo. Other correspondents
include Carl H. Wilson, general manager; Leonard C. McChesney, manager of
the Advertising Department, F. K. Dolbeer, manager of sales; and Eldridge R.
Johnson, president of the Victor Talking Machine Co. Included are letters
pertaining to the manufacture, distribution, and sale of phonographs and cylinder
records, as well as correspondence about litigation, patents, and other legal
matters. Among the documents for 1909 are items concerning the activities of
the Advertising Department, the introduction of Amberola records, and the
development of a concealed-horn phonograph and an eight-minute record. Also
included are letters relating to the decision and settlement in the New York
Phonograph Co. case, to competition and cooperation between NPCo and Victor
Talking Machine Co., and to corporate reaction to the Copyright Act of 1 909. In
addition, there are pamphlets giving jobbers' and dealers' discounts forthe year
and an undated Edison memorandum proposing a record exchange system.
Approximately 10 percent of the documents have been selected. Among
the items not selected are documents regarding local and state legislation and
the business of individual dealers and jobbers.
DEALERS* DISCOUNTS — Continued
REPRODUCERS, RECORDERS, Etc.
Edison Models C, D and H Reproducers 40%
Edison Universal Shaving Machines - 30%
Repealing Attachments ----- 40%
Edison Primary Batteries, Battery Parts
Chloride Accumulator Storage Batteries 20%
PARTS AND SUPPLIES
Phonograph Parts (Repair and Supply)
see Catalogue of Parts . 50%
Miscellaneous Supplies, such as Speak¬
ing Tubes, Hearing Tubes, Multiple
Attachments, Flexible Connections,
Chip Brushes, Graphite and Stratena 60%
MISCELLANEOUS
Nei Prices
Recording Horns . $1.50
Printed Matter Racks - — - .30
Small size, (2 doz. in package) per doz. . 80
Large size, (1 doz. in package) per doz. 1 . 50
EDISON
PHONOGRAPHS
RECORDS, PARTS
AND ACCESSORIES
Dealers
Discounts
January 1, 1909
Supersedes all Discount
Sheets of previous date.
NATIONAL PHONOGRAPH CO.
ORANGE. N. J, U. S. A.
Dealers’ Discounts
Triumph Horn
DEALERS’ DISCOUNTS— Continued
EDISON CRANES
Gem Crane - -- -- -- - $.18
Standard, Home, Triumph, Balmoral,
Conqueror and Alva Cranes - - - .00
Idelia (Oxidized finish) ----- 1,80
RECORDS AND BLANKS
Edison Ambcrol Records, net each - - $ . 28
Edison Standard Records, net each - - .20
Edison Grand Opera Records, net each .45
Edison Concert Records - - - - - 40%
Edison Blanks (Standard and Concert) 30%
PHONOGRAPH CABINETS
Standard
Triumph or Alva - -
Balmoral or Conqueror
COMBINATION ATTACHMENTS
JOBBERS' DISCOUNTS— Continued
REPRODUCERS, RECORDERS, Etc.
Edison Models C, D and II Reproducers 50% 40%
Edison Recorders . - 50% 40%
Edison Universal Shaving Machines - 30% 30%
Edison Primary Batteries, Battery Parts
and Renewals . - 30% 20%
Chloride Accumulator Storage Batteries 20% 20%
EDISON
PHONOGRAPHS
RECORDS, PARTS
AND ACCESSORIES
Jobbers
Discounts
January 1, 1909
Supersedes all Discount
Sheets of previous date.
NATIONAL PHONOGRAPH CO.
ORANGE, N. J, U. S. A.
- A Saw Messrs. Johnson and Ceissler in Philadelphia to-dav on the
/Allowing points: 3
1. In reference to the Pierman air reproducer. They sug¬
gest that when we are ready to put it out model be submitted to
Mr. Pettit, and if it does not infringe they will have no objec¬
tion. ,If it does infringe and there is a probability of the
patents being knocked out; they believe it wouli bn better, to have
kn understanding between the two companies by which we will be
licensed under the Parsons and Short patents. i
\ 2. On the subject of copyright, after considerable l<4iscus-
sp.on they agreed with me that unless the situation raateriiaiy
change s the best course would be to compel the composers (ft come
to us, rather than that we should go to them. A
1 3. They are entirely willing to co-operate with us bn the
subject of talent and will agree that so long as we remain\in
tlf cylinder business and they remain in the dis& business they
will make no contracts with talent to exclude us, except ini the
Rel Seal list. This applies to talent now contracted for
well as for the future. They agreed with my suggestion, -th^t
whenever possible talent should sign exclusive' contracts with' w,
for the cylinder line and with them for the disc line, thereby
exc .uding the Columbia. The arrangement is .simply an understand¬
ing between ourselves, which can be changedat the option of either
par y upon reasonable notice to the other. "W. H. Miller, for
the National Co. and C. G. Childs for the Victor Co. are to work
out the details.
| 4. Mr. Johnson i3 very anxious to have modifications made
in the Patent laws by which increased protection can be afforded
to inventors and many of the injustices now common will be impos¬
sible. He believed that the life of a patent ought to be extended
for as many years as it is involved in litigation, but this seems
to bi impractical. I think a better suggestion would be to
amend! the statutes so as to provide that preliminary injunctions
shalJl be granted in all cases where the patentee is a bona fide
manuiacturer and the defendant comes into the field afterwards
and where infringement is reasonably certain, the validity of the
patent being left for final hearing and the/ complainant being
required to file a bond. possibly O’Connell might be able to
work Ip a propaganda on these lines. I promised Mr. Johnson to
write Ihim more in uetail.
5. It is generally understood between us that so far as
possible cordial relations should be cultivated between the two
companies and that where our interests are in common we should
co-operate as closely as possible. A meeting between us every
two orj three weeks would no doubt bring about very desirable
results in the end.
C\
F. I.. D.
TO TII1H NUMI.Klt j, r L 1> V IS XI
• 216 MEMORANDUM
4>
Mr. Aylsvrorth: ’ l/7/o9.
Mr. TSdinon upoke to me the other day on the subject of
using lattp blaok in our record composition, and hr seems to feel
that the presence of this ingredient results in the wear of
the sapphire. Is there any reason why lamp black should not be
entirely omitted?
EbD/lW „vF. L. D.
The interest you manifested last week in the farm
paper advertising being done by the Victor Company, BabBon
Bros, and ourselves, prompted the preparation of the
data herewith concerning the various forms of our publication:,
advertising. It is submitted with the hope that you will
find its details interesting and informing.
According to our annual custom, we arranged in the
lata summer the usual schedule of general weeklies and
monthly magazines, covering approximately $125,000, the
same amount as spent in the same class of publications
during the year ending August, 1908. The publications
in this schedule are sho\7n on sheets A. At this time it
was thought that we would spend about“$100 ,000 additional in
newspapers in the United States and Canada.
As you will recall, it was decided in October not to
have a newspaper oampaign this year, hut instead to spend
the additional $100,000 in farm papers, country v/eeklies,
soma additional magazinas, etc., besides spending about the
same amount in Canada as in the previous year. To this end
the following schedules were prepared:
Additional Magazines & National Weeklies §10.857.16
Barm Papers 38,265.61
Foreign language Papers 3,414,07
Country Weeklies, Jacob* s hist and ’
:3 Sunday Magazine Sections 22,072.09
Canada (approximated) 12.000,00
, §86,608.93
The remaining $13,400 may be expended in getting special
positions in magazines or speoial advertising, or it may
not be spent at all should business not warrant it.
Sheets _A. and B-- The amount spent in these publications
is, in our opinion, about th8 same as being expended by the
Victor Company in the same class of mediums, and is probably
$60,000 more than the Columbia Company will spend if it
continues to advertise as it has been doing for some months
past. The latter company's expenditures for the past three
months have been quite heavy, being nearly aB large as those
of the Victor Company and ourselves, but it is not likely that
)
-t-
Mr. Edison -2-
Jan. 7, 1909.
SgSBHBiSr
f am papers fn BuTornfftm?" The8llat°haa\36 °f th® t9Bt
We have Planned L See *? °«^s.
impending ?r om §lQloOOa?on$60<iOOOr in^Arm ^ ^“^“Pany
our expenditure of $38,000? In «rL,i^ ?+PaP8.^ 88 ^inet
to prevent duplication'1' Babaona do not use,
>»» «
for one’ a ea son a FI ea s t^t o^t rv ~^SLS~~ Xt Beemad. das ir able,
Papers printed ^
to c o'Stry 1118 “attar referring
■because, of Itheir' wide o ir Oulat iorTln mn’ n ara U8inS 'them
communities. . The religious pJpers^riS ja^f and rural
Associated Sunday Magazines £n Shfets A? ;ln the
of tha'papers Tn^^thf1? ourtSunday9oomtinationHati0^S Of each
groups show that the- total cir^la?ion ^ ??8* The8e '
these combinations is 5,600,000. th® pap9rs *n '
in clties of the papers
of the If. Y. Yf^g8|"fnth8 s^day Ifagazine, Section's
a combined circulation of l 453 vVf Y* Tribune,- we get
Tribune, Examiner and Record-Herald3 we BL?slng Chi°ago
- circulation of ' 1,244 941) fat a combined .
Sunday Magazines covers a nof?nrfd«J fortheABSOciat®d •
..other three combinations coveJ^a period7^ ?nd th?t;°f the
Pap.r. « ^SSSP^^&SIg S.S3&,
Mr. Edison -3-
Jan. 7, 1909.
ste months. We may find it profitable to continue to
advertise in the combinations that we have planned to use
for six months only. This will ha determined later.
It, +T,fh?at E-Sives th9 "a3193 and circulations of the papers
l'iBh 1119:7 rePr0sent about all of the
religious denominations of the South.
. .. Frooff allowing the character of the copy that we are usinv
&s LItr!°U8 PaP9rS Wil1 b9 8ent with this matfer or l f ew g
the fSlo“r^oun?l:f0r9S°ine’ W9 W arranged to spend
& MONTHLY MAGAZINES
NATIONAL
EARN PAPERS
FOREIGN LANGUAGE PAPERS
COUNTRY WEEKLIES
JACOB'S LIST
SUNDAY MAGAZINES (Not including Asso. Sunday)
135,347.23
3B, 265.61
3,414.07
10,758.44
2,730.50
8.583.15
$199,099.00
0Um2!?ry the circulations of the publications in
which our advertisements will appear is as follows:
fS0Se5EICLIES & M°NTIIIY aAGAgINES' . • 16,132,231
FOREIGN LANGUAGE PAPERS
COUNTRY WEEKLIES p’vpr’Spr
JACOB'S LIST
SUNDAY MAGAZINES ( Not including Asso. Sundays) 4 573 231
"59',SC6j226
with a lis?1^ ?^°^andUm ^°l?09rnlnB the Canadian advertising
days. PaP9rB 1591115 U0ed wil1 159 89nt 70U in a flw
any^of.,the foregoing matter is not clear or vou
advise SaT furth9r infor“ation on any particular point, please
Iu. C. MoChesney.
Copy to Hr. Dyer
[ENCLOSURE]
ORISI1TAL LIST OP MONTHLY MAGAZINES AND NATIONAL AmKLUSS
The publications named on' attached sheet comprise
those Which we planned to use in the schedule made up
_time we decided to spend roughly
$125,000 for this character of advertising. The cost
giveB the' total amount for each publication and includes
the agency commission.
[ENCLOSURE]
PUBLICATIONS
SPACE
CIRCULATION
TOTAL COST
INC. COMM.
Collier' b Weekly
4 pn. in ooloro &
5 1/3 pagos
600,000
15,345.00
Sat. Eve. Post
1 dhlo. page in
2 colors
2 flill pages &
.1,000,000
91/3 pagOB
19,080.00
Aeso. Sun. Mags.
1 B.C. page &
1,100,000
11 1/4 pages
7,821.00
Youth's Comp,
12 l/4 pageB
585,000
0,602.00
American
1 B.C. & 13. pages
250,000
4,340.00
Cosmopolitan
14 page s
425,000
5,644.80
Everybody's
14 pageB
500,000
7,000.00
MoCluro ' a
1 B.C. lc 13 pages
464,000
7,038.00
Munsey's
1 B.O, & 13 pages
BipjOOO
8,000.00
Rev. of Reviews
14 pages
200,000
3,150.00
Ladies' Rome Jml.
8 l/4 pages
1,200,000
9,070.00
Woman's TTome Comp .
1 Cover p. &
7 1/4 pagos
600,000
5,930.10
Ladies World
8 l/4 pages
497,000
2,801-. 20
Outlook
6 pages
120,000
757.35
Argosy )
444,000
All-Story )
R.R. Mens )
250,000
3,316.00
Rod Book .
8 pagos
350.000
1,636.25
Suooess
6 magazine pages
300,000
2,688.00
Broadway.
8 pagos
200,000
613.45
Metropolitan
6 pages
, 175,000
1,200.00
Paoifio Monthly
6 puges
110,000
656.37
Sunset
6 pages
100,000 1
660.00
World's Work
8 pages
1082000
720.00
World To-r>ay
6 puges
100,000
631.09
National.
8. pages
224,000
1,009.80
Ainslee' s
8 pages
250,000
1,000.00
Pearson's
8 pafioa
6 1/4 pages
225,000
1,135.99
Human Life
1,060.90
Home Magazine
8 magazine pages
225,000
983.74
Butteriok Trio
1 page
1,600,000
2,050.00
Puck
84 1.(9 times)
86,000
410.80
Judge
84 L. (9 times)
85.000
353.43
12, 9 88, OCXT '
$124,490 .07
[ENCLOSURE]
OT ?!0lra{T'Y MAGAZINES Aim
national .wbekeies:.' .
Added after a decision was reached not to have u'nowspapor campaign.
PUBLICATION
Ifo. of Ins.
CIHCULATIOM . ;
TOTAL CO S3
WEEKLIES
“ 5 tines
literary Digest
5'timus
1108.80
Leslie’s Weekly
5 times
707.13
Scientific American
5 tines
. 519.75
MONTHLIES
Century
6 pages
1125.00
Harper's
4 pages
891.00
Scribner.' s
4 pages
900.00
Overland
4 pages
70,000
201.96
Good Housekeeping
4 pages
210,231
891.00
Outing
4 pages
641*52
Popular )
Smith's )
4 «
4 »
300,000
150,000
' 1160.00
McCall's.
■ l/page
,940,50
Blue Book
S pages.
150,000
• 280.50
Q.UAHTERLY
Quatcrly Style Book
1 page
■ 990.00 —
3, 16^, '231
$10, '857 .15 f
[ENCLOSURE]
"BASH PAPERS
We have planned to run a 400 line advertisement.
( 9 1/2* deep X 3 columns wide) in eaoh of the papers
on attached sheet, once a month for six months,
omitting June, July and August. This advertising is
beginning in the* latter part of December in about
half of the list. We were too late to get copy in
the remainder of 1 the December issues. Those will be
begun in January.
The cost of this advertising is figured out on
a lino basis. The cost of eaoh publication can be
had by adding 10^ to the line rate and multiplying
by 2400 lines (400 lines six times).
[ENCLOSURE]
PUBLICATION
/ American Agriculturist
/ Orange Judd Parmer
J New England Nome stead
V Rural New Yorker
Nat'l Stockman Sc y annex
V Parm Sc Ranch
/ Ohio Parmer
/ Michigan Parmer .
< Breeders Gazette
S Hoards Dairyman
/Wallaces Parmer
Iowa Homestead
Parmers Hail & Breeze
</ Wisconsin Agriculturist
Indiana parmer
Oklahoma Parmer
Colman's Rural World
20th Century Parmer
Pield & Parra
SEMI-MONTHLIES
/ Farm & Home
Southern ALgrioulturist
/ Home & Parm
/ Southern Ruralist
Parm & Eire side
/ Parmer
s Parm Stock & Home
/ Oklahoma Parm Journal
Dakota Parmer
Ranch ,
/Town & country Jml.
MONTHLIES
/ Greens Fruit Grower
✓ Parm Journal
Southern Planter
Southern Pruit Grower
/ Successful Farming
Nat. Parmer & stock
Grower
CITY CIRCULATION NET RATE
. i - - - JJER LINE
Springfield, Mass.
New York City* N.Y.
Pittsburg, Pa#
Dallas, Tex.
Cleveland, Ohio
Detroit, Mich. '
Chicago ,■ Ill .
Pt . Atkin son, Wis .
Des Moines, lac.
Des Moines, la'
Topeka, fcans. '
Racine, Wis.
Indianapolis,- ind.
Guthrie, ■ Okla.
St. roula,' Mo . '
Omaha, Neb. •
Denver, Colo.
100,000)
94,000)
50,000)
100,000
75,000
75,000
100,000.)
80,000)
74,755
40,000
502000
100,000 .
66,067
60,000
30,000
41,514
50,000
75,000
30,000
.7875
.35
-.216
-.371875
.54
•.153
.2025
-.35
.2183
.1925
'.126
>0595
.102
-.2125
.0595
Springfield, Mass.
Nashville, Tenn.
Louisville,- Ky.
Atlanta, Ga.
Springfield, Ohio
•St. Paul, Minn. •
Minneapolis, Minn.
Okla City, Okla.
Aberdeen, S. D.
Seattle, Wash.
San Francisco, Cal.
432,238
50,733
100,000
100,000
453,376
115,208
104,000
32,000
52,000
22,896
40,000
1.4875
.17
-.405
.34
1.53
.36
.324
'.1275
-.216
.0945
.17
Rochester, N. Y. 129,583
Philadelphia-, Pa. 573,083
Richmond, Va. 20,000
Chattanooga, Tcnn. 36 j 418
Des Moines, la. 313,804
St. Louis, Mo. 104.666
Commission
2400 line s (400 x6)
-.311875
2.833
.076b
-.1275
1.275
.32
14.49455
1.449455
15.944005
$38, 265.61
[ENCLOSURE]
FOREIGN LANGUAGE PAPERS
Wh was decided not to have a newspaper campaign.
forhf ivePmo^« toJ*se 20? }ln2? 7" deep two 00lumnB wide' once Sa month
for five months. The coBt 1b figured out on a lino basis. To <?et the
byS1000 adni°^ to the lina rata and multiply5
Dy 1000. This advertising will bo given in Jtanuary.
PUBLICATION
CIRCULATION
NET
GERMAN
Western Und Daheim,
Chicago, Ill.
72,000
.255
Abendsohikle,St . Louis, Mo.
55,320
.17
Deutsche Am. Farmer,
Lincoln, Neb.
140,000
.2975
Lincoln Froio Freese,
Lincoln, Neb.
140,000
.2975
Staats Zeitung,N.Y.City
78,000
.2125
Morgen Jrnl.,N.Y.City
82,100
.171
Deutsohe Hausfrau, Milwaukee
132,000
.3825
Haus & Bauornfreund, *
103,000
.2125
Germania, Mil\mukee
107,000
.2125
NORWEGIAN
Skandinavian, Chicago , Ili.
50,000
.072
Kvinden Og Hj emmet ,
Cedar Rapids, la.
82,000
.2125
Tidende ,Minnoapo li s ,Minn .
32,256
.075
Danske Pioneer, Omaha, Nobr.
38,500
.045
SWEDISH
Svenska Tribunen Nyheter,
Chioago, Ill.
57,500
.1275
Svenska Amerikanaka Posten
Minneapolis, Minn.
51,512
.135
BOHEMIAN
Amerikan, Chicago
47,700
.0675
Osveta Ame r ika , Omaha ,
it;
25,000
'988—
.0286
[ENCLOSURE]
HEBREW
Jewish Courier, Chicago
Circulation
1,303,988
10,000
.0225
Jewish Forward, H .Y. City
79,000
.0571
ITALIAN
L' Italia, Chicago, Ill,
32.035
.05
1,425,023
3.1037
-.31037
3.41407
1000 lines
equal $3414.07
[ENCLOSURE]
' E
oowi'ox TOSHiiEB jam swmior magazine sections op surowor uww/amu;.
Added after it tno decided not to have u newspaper campaign.
'7n«tll‘>,?.ountr'V «n«*lins v;,! have already run a 400 line advertisement
* * */■* docpjtay 3 coliitma v/ide) in each and will have a ,*200 line
auvortirccijwmt (7W do«j> by *1 Qulur2nu vide) unco a non^h until Huy inoluraiva#
In the Jacobs list we vrlll nin 340 linos once u nontii until hay.
unt.UIn'avh<! f!wnrtajf Heotionn, we will run 310 linen once tx month
PAPVK
coinrero uugrLira
CIRCULATION
Saturday Globe
Orit
Chriotlun herald
Blade
Enquirer
Hewn Scimitar
Commercial Appeal
Homo Herald
Appeal to Reu non
Commoner
Journal
Stur
Repuhllc
Harm Px’ogrosn
Globe Democrat
Conntitution
Utley., ’'.Y.,
Willinneuort,- l5a.
How York, u.Y.
Toledo, Ohio
Cincinnati, Ohio
Memphis, Tonn.
Memphis, Tonn.
Chicago, Ill.
Oerard, Trims.
Lincoln, Hob.
Kannna City, Ho.
Kansan City, Ho.
St. Loui a
Atlanta, On.
JACOBS LIST
41 Southern Religious Papers
smnTAY MAOAS
103,1(5:5
3:51,(3(57
300,000
204,000
100,000
100,000
00,07(5
125,000
300,000
140, 000
209, 031
204,800
-*-100,000
:50o,ooo
+100,711
+ +117,000
2, 7 28,~32ff
. 15130
.17
.170.0
.0070
06.900 0 "
Commission 6906
1400 lines— $10,78(5.44
378,074 1.723(5
Connl union 1724
wt&hw
1400 lines— 02730.00
HUES
Illunt rated Sunday Hagaaino a 7:53,500
Hearot'e Am. Sunday Hugnnlnns 2,092,731
United Sunday Kagaalnea 1,747,000
T;'5T3,2':5T
■*■ Thin circulation io twice a week— came oopv
+** " " 3 times a week « «
1.(5068 1140 L. $2049.89
2.19378 18(50 L. 15040.84
2.32 13(50 L. 3498.72
' 08883,1b
[ENCLOSURE]
SomSKraS S ££,?“ mma mw,ri<
oamauceimw
UlTTTiJD SUNDAY WAGAZUrrs
World
Record
Prone
Plain Dealer
Tribune
Star
Courier
Journal
Tribune
Pree Preen
Tree Preen
Poet
Mow York, jj.y.
Philadelphia, p«.
Pittsburg Pa.
Cleveland, Ohio
Chicago, Ill.
Indianapolis, ind.
Buffalo, u.Y.
Kansas city
Minneapolis, Hlnn.
Milwaukee, Vi».
Detroit, ;;ioh.
Denver, Col.
550,000
1 <50, 000
100,000
95,000
300,000
90,000
90,000
73,000
100,000
45,000
. 57,000
, M'POO __
1,747,000
insAigg kohday macamihes
Aanrioun
American
Exorilnui*
jixa-iiner
32::nniner
J’ow Yor5:, !i.Y.
Boston huee
Chicago, in .
Los Angeles cal.
fian Prenclrco, gal.'
<310,793
303,152
724,941
-neffila —
Lender
Times
Con. Tribune
paanyun
fJonfcinol
Mewe-Tribune
Courler-Jml.
Tribune
Pionoor-Pross
Rojiublican
Dera-Chronlolo
Telegram
Do spat oh
Mews
Cleveland,
Buffalo
Cincinnati
Pittsburg,'
Mew Orleans
Milwaukee,
Detroit,
Louisville
Providence,
Ot. Paul
Denver,
Roche utor
Woi-cdotor,
Colunbus,
Omaha
Ohio
M.Y.
Ohio
Pa.
Till.
Win.
Mich.
Ky.
R.I.
Minn.
Ool.
M.Y.
Maas.
Ohio
lieh.
Record-Herald
Republic
Pont
Px'enn
Tribune
Po nt
Otar
Journal
HOWl)-Doci.
ASBOC’lATKD OUlfDAY UrMAZlmt.n
Chicago, Ill.
Ot, Louis ITo.
Pittsburg, Pa.
Philadelphia. Pu.
Rev; York, w v
Ronton
Washington
Minneapolis,
Rocljy hto.
M.Y.
ifclSSi
D.O.
Minn.
<‘>0,000
47,500
<50,000
05,500
30,400
47.500
71,000
50,000
21.500
37,000
30,000
40,000
20.500
41,000.
50.000
500' ”
S3 no, ooo
150,000.
57,000
130,000
'05,000
220,000
40., 000
Combined total.. ,.5!
,<501,4:51
[ENCLOSURE]
CIRCULATION BY CITIES OE THE PAP3®S INCLUDED IN
SUNDAY MAGAZINE COMBINATIONS.
Boston
Buffalo
Chicago
Cincinnati
Cleveland
Columbus
Detroit
Denver
Indianapolis
Kansas City
Los Angeles
Louisville
Milwaukee
Minneapolis
New Orleans
Now York City
Omaha
Philadelphia
Pittsburg
Providonoe
Rochester
San Eraftoi boo¬
st. Louis
S}. Paul ■
Washington,
T/orcostor
Mass.
Ill.
Ohio
Ohio
Ohio
Hioh.
Colo.
Ind.
Mb.
Cal.
Ky.
m a.
Minn.
La.
N.Y.
Neb.
Pa.
Pa.
?. Cal.
Mo.
Minn.
D.c. :
Mass.
823,158
137.500
1244,941
60,000
164,000
41,000
120,000
170,000
90,000
73,000
71,615
80,000
92.500
172,000
38,400
1453,793
58,000
290,000
252.500
21,600
40,800
173,424
-IBOjPQO
39,000
40,000
28.500
THE TOUR
\;Sf-
[ENCLOSURE]
“£5 papers included in Tin* Jacobs list of southern religious
PAPERS AND CIRCULATION OP 3ACII.
ALABAI.tA
Birmingham,
Alabama -iGhristianeAdvocato
11,100
ARKANSAS
Little Rock.
Weatorn Mothodiot
Baptiat Advanco
Arkansas Baptiot
The Searchlight
12,937
6,- SCO
0,000
7,000
GEORGIA
Atlanta
Christian Indox
Weal cyan Chris. Advocate
Golden Age
.11,100
11,227
12,000
KENTUCKY
Pulton
Louiovillo
Baptist Flag
Pentecostal Herald
Central Methodist
16,000
23,700
7,000
LOUISIANA
Now Orloana
Alexandria
Southweii torn Preobyterian
H.O. Chriatian Advocate
Baptiot Chronicle
0,376
6,aoa
4,500
MARYLAND
Baltimore
Balt. Southern Method ait
7,250
MISSISSIPPI
Jack son
The Baptist Record
6,329
NO ..CAROLINA
Greensboro
Raleigh
Wilfjon
Raleigh
• 1T.C. Chriatian Advoodte
Raleigh Chriatian Advocate
Weekly Messenger
Biblical Recorder
0,227.
9,000
2,000
17,000
OHIO
Dayton
Lutheran Evangelist
Herald of Gospel Liberty
0,000
5,750
SO. CAROLINA
Columbia
Duo XI oat
Groonvilla
Greenwood
Spartanburg
Lutheran Chruch Violtor
A.R. Preabyterlan
Baptiot Courier
Chriatian Appeal
Southern Chriatian Advooato
4,550
2,315
9,025
3,000
11,125
TENNESSEE
Mart in
Nashville
Mcraphl e
Nashville
Tullahoma
Primitive Baptiot
Baptist & Reflector
(fospel Advocate
Jowl ah Spectator
Midland Methodist
Cumberland Preo .Banner
10,750
0,300
14,000
11,600
0,750
11,000
TEXAS
Dallas
Peniel
AUBtln
Texas Baptiat Standard
Chriatian Courier
Pentecostal Advooato
Pirn Foundation
38,000
6,250
5,600
14,000
VIRGINIA
Roanoke
Richmond
Baptist Timoa
Rellgioua Herald
I 2,500
l! 8,000
NEST VIRGINIA
Burbouraville
Parkersburg
Western Va. Moth. Advoo&te
Baptiat Banner
/ 0,000
/ 4,000
MEMORANDUM
J359__
1/15/09 .
I hand, you herewith, letter from the Thompson &
Norris Co. with a note from Mr. 'Edison endorsed thereon. I wish
you would take up with me the difference in prices involved in this
matter.
NLD/lWW
E. L. D,
[ENCLOSURE]
To insure prompt attention Address All Communications to the Company.
The Thompson & Norris Company,
CORRUGATED PAPER AMP PAPER SPECIALTIES.
BROOKLYN, Jan. 14th 1909.
Dear Mr. Edison: -
. gmC T
-r t(r _ _
ohflotnff +\ 1 have tofay received'“ifrom^kr. Deeming (your new pur-
we havf ffr"thp a r?q?est for » revision of prices on the packing material
to a +W° year8 been furni shing the Phonograph Company, and
yK° a 8raaTler extent, to some other branches in which you are interested
Mr. Leeming states that he has received more favorable quotations from
r^r?etit0rs<and 2hat as the old contract has been oomoleted he ex¬
pected lower prices from our Company.
* 1 rf?ret compelled to advise him, to keep up the
rIductionBin°thpa^r^ and promptness of delivery we could not make any
I dn n ? i 68 already quoted. When the quotations were figured
Lf? believe there was a customer out of eleven thousand on our books,
that received more favorable rates than the Phonograph Company, and there
is tbs °"e8}ngle thing entering into the manufacture of our goodB that
is the fraction of a cent lower now than it was then, and semi are higher.
+ , You may ,not be aware of the fact that there is a combina-
tion of manufacturers who were organized for the purpose of getting better
s£s,^A’*-fnd tha\£eca^Se TV w?uld not Join them are making the most
absurd figures; the object being evidently to force us to reconsider our
refusal to become one of their members. I can see no other reason.
Our Company has expended more money in fixing up special
^tn^eAy+and a< deParbment for the Phonograph work than has Bofar been
returned to us in profits from the business.
...I feal sure ft one thing - that is, that we have not a
®d“Sle °°1 ”5* e-tdtor wh° fan give you . the service that we can. I have per-
sonally had charge of this special business for you and have been as loyal
ta y°u in every thing connected with it as I have been in other things *
which you are in a position to know more about - so without further 6
2b y?U’ I1wi8h;y°u would in your own good way tell Mr.
1 2s °n2y dolns hls duty aa he understands it, to renew
the contracts which have been completed.
[ENCLOSURE]
Thomas A. Edison
Jan.' 14th 1909. - 2 -
Our Company has answered Mr. L. to the effect that we can
now do no better than we have done in the past.
I hate "like the Dickens" to being this little matter before
you, but I could see no help for it.
_262_
MEMORANDUM
Mr. Harry p. Miller:
l/l8/09.
Tjrxau^
r
I hand you herewith letter from Mr. Aylsworth
asking for an additional advance on the amount to he paid him for
hi3 patents when the Amberol record waB successful, also a note
from Mr. 'Edison explaining his present understanding of the
arrangement. I think you had better keep these for future refer¬
ence, in case the question ever comes up again. Mr. Edison has
endorsed on Mr. Aylsworth's letter a note to pay him an additional
$5, 000; 00 on account of the patents, and I wish you would make
arrangements with Mr. Edison to have this done. The money will
he paid hy the\ New Jersey Patent Co. E. I>. P. Enc-
[ATTACHMENT]
J. W. AYUSWORTH,
Technical Chemical Expert.
A*y
iy/
v /
rsw ^
(JaA ^VS. W*.aV-e- ££-c (Le<^-e. *»
?"***> ^ .^-WiJL,
tZ*t>c<yz^Zr ? ^Lx-cs-t
[ATTACHMENT]
{ - ! _ __i _
_ ILfc, < 0
.kfl- _ IQ £><?«>. j ._
lu>o>S .ft-t^tov-aLlo
ec-C/Lr ■>=• llu>-4^*pL^
_ r«=ri7«^w^. _ I(m~ ^AA-lgwCg.. Q~^J
(jrtfc^ J CD^u(S2rr?.LL
_ ( iuLB-^fe^ %e> c*-o~fcb &1g &4&,£J2%LJLl
'p/^LC-n , - CL&JJ-Z.'Ch.a.
Jan. 18th, 1909,
I attach a schedule^showing the advertising done hy
the Edison, Victor and Columbia Companies in the December
weeklies and the January monthlies.
The amount given in the Edison column does not correspond
with the list sent you a month ago, for the attached list gives
the gross rates, while the previous one was effected by the
Agency arrangement, • .
This list shows practically all the advertising done by
the three companies in thiss class of medium. It does not,
of course, include the advertising done (by the Victor Company
in newspapers nor that done by the Victor-1-.- Company and oua«
selves in Farm papers and Company weeklies.
Yours very truly,
McCA L.G. McChesney.
[ENCLOSURE]
DECEMBER WEEKLIES
. Aa.cjQj.5un.Muga. _20th
ChriB.Harald . . «).th
Collier * a .... 2nd
Judge. ...
Leslie’s . -junai. isua u.
-Life , . - .
Literary Digoofc 12th 224 Lines
BDI3CW VICTOR
-l/d" J\ 500,00
400 L. 400.00 lGth-Rack Cov.1000.00
3 color P.24-10.00
224.00
127.00
39.27.
. .lQth-Wafj.Pago 134.40
2Gth 1/2 Pa.ro
24th 1/4 Page
. Outlook
Puck
■ Scientific Am. 19th 140 Linea 10U.00
Sat. Kvo .Post ,
{ Youth's Comp .
JAHTTARYiiOliTirr.IRS
aii-Stdry )
Arfcosy ) Argosy Combination •
-R.R.Kwi'-o ) . . - ' . . .
1 -Ain -loo's) - . .
Popular )Smith CVeh) Pugo
--{Smith's- )Trio.-,(.Pob) .... .......
— Delineator) - - - - - - -
. Designer--) - But t erick-Trio . -
; —2fev7 Idea -)- - - - .
f; —Blue -Bouki- Rpa-BoPk-Comhln.-vV.tm
:- Rod Book - )• - - - . - .
American Page .
- Bohemian
-—Century —
. Pugu
_ Page 552.30
_ _ Pugo
_ "'..Pugg . ",
PugO 540.00
- _ puee _;._z
2 Pages 80G.40
P ago 302.77 2. Pages 500.00
Page 10G.00
__i.2j?agt! 8I37S .00
(2)Pugos 805.40 2 Pugea 8Ot5.'40”
. . . . . Hag.P.158.00 ;
. . •_ _ _ (2)Pfigos 128.00- _ _
1000.00 . . (2)pagesl000.00 2" Pages 1000.00
_ Page 22!>. 00 _ _
Pack CovOOOO .00
: i/2iPi«£P .9.50^ m. :
(2)Pagos 828.00
2 Pages 450.00
"2Wgei~nr2iOKr~
CpBmopolitan
Country Life — -
Currant r,it. -
: Everybody's Page
- .Good- Housekeeping . - - . - - - - - ----
Hampton* b . — - . - . . . ------ . . - .
Harper's - -
--Ladle b* Home— Jl«- . — - - i -
-. Ladles’ World . . . — . - — • -
. McCall's - — . — l/il-V-HRH - U5Q..00—
KcClure's - Pugo 414.00-
- - Metropolitan : - - - — ~ — - — - - _ _ _ _
— Mun-sey* 3 - - : - Sack - Co v. 2000.00 - tg).PagonlQ00 .00 2 Pago a 1000.00
- Hftt ional — ----- . - - - - - - 1 - —__Pago_._17q.00 _ - _ _ _ ■ -V
- - Outing — — - — — - - - - — , — - - - — : - _ I _ _ _ , 1 ' _ •
- - Overland . — - - - - - - : — - j_ _ _
Pacific - - - - - JP-«gfl_._llp..Bp _ . _ ;. ...
) - Pearson'-s - — - . - Pago - 172.12 1- - : — : : - 1 _ : _ —
S- Rev. of Reviews - - Page 225.00 - 2ndCoy. 225,00 _
! , Scribner's - - Page - 225.00 — . ( 2) PUges ,450.00
i<i Style - Book -Ho . -
■--Success— -
— r'Shnsfi-t— -
jV —Tech .-World- . —
N -Theatre- Hag.,- -
'Uncle Remus'; -
Van Orden's
-Woman* as -rrome -<
> 4'4G.OO
l/4 Page lflO.fioG
Harupagc 112.00 _ . ; ~
- World's Work -
World -To-Day .
" ylsyOT.TTT' 3 r~- t
Referring to factory schedule for machine!
a0^cf1?-ed for ln “y mem0» dated Jan. 12th, please ii
schedule, as follows;
, PHONOGRAPHS ; Carry 500 in Btook ready for shipment,
and 500 more in testing department ready to he delivered to
stock room when required* Carry finished parts in stock Buffi^
oient to assemble 1,000 machines, hut go slowly on such parts
as may He changed when the combination machine 1b adopted. Base
assembling on shipments made during previous week.
STANDARD PHONOGRAPHS MODEL "Cs Carry 500 in stock ready
+o «?nivment’ a?d 500 i? *eBtinS department, ready to he delivered
T°?m when r«9ui»»d. Carry finished parts in stook
sufficient to assemble 2,000 machines. Base assembling of machines
on shipments made during the previous week.
STANDARD PHONOGRAPHS J MODEL "D“; Carry 1,000 in Btook
ready for shipment, and 1,000 in testing department, ready to be
delivered to stock room when required. Carry finished parts in
stock sufficient for 5,000 maohines. Base assembling of machines
on shipments made during the previous week.
HOME PHONOGRAPH, MODEL "B"; Carry 150 in stook ready for
shipment, and 100 in testing department, ready to be delivered
to stook room when required. Carry finished parts in stock
sufficient to assemble 1,000 machines. Base assembling of
machines on shipments made during previous week.
HOME PHONOGRAPHS, MODEL »C°: Carry 25 in stock ready for
shipment, and 25 in testing department, ready to be delivered
to stook room when required. Carry finished parts in Btock
sufficient to assemble 250 machines. Base assembling of machines
on previous weeks shipments.
HOME PHONOGRAPHS, MODEL "D"; Carry 1,000 in stock ready
for -shipment, and 1,000 in testing department, ready to be del¬
ivered to stock room when required. Carry finished partB in stook
sufficient to assemble 5,000 machines. Base assembling of maohines
on previous weeks shipments.
TRIUMPH PHONOGRAPHS, MODEL "B": Carry 25 in stook. Base
assembling and finished parts on previous week's shipments.
TRIUMPH PHONOGRAPHS, MODEL °C»; Carry 10 in stook ready for
shipment, and 10 in testing department, ready to be delivered
to stock when required. Carry finished parts in Btook sufficient
to assemble 100 maohineB, Base assembling on previous week's
shipments.
NATIONAL PHONOGRAPH COMPANY
(2)
TRIUMPH PHONOGRAPHS, MODEL "D* : Carry 100 In etoak ready for
ehtpment, and 1.00 in testing department, ready to te delivered
to stock when required. Carry finished parts in stock sufficient
to sink to assemble 1,000 maohineB, Hass assembling on previous
week's shipments,
STANDARD ATTACHMENTS : • Discontinue assembling altogether
until present stock of finished attachments is reduced to 5,000,
Then base assembling on weekly shipments. Carry finished parts
in stock sufficient to assemble 10,000 machines,
HOME ATTACHMENTS: Discontinue assembling altogether
until present stook of finished attachments is reduced to 5.000,
Base assembling on weekly shipments. Carry finished parts in
stook sufficient to assemble 10,000 machines.
TRIUMPH ATTACHMENTS: Discontinue assembling altogether
until present stock is reduced to 500, Base assembling on weekly
shipments. Garry finished parts in stock sufficient to assemble
2,500 machines.
REPRODUCERS, MODEL "C": After providing for all machines
complete except reproducers, we have a stock of ifaftkd 10,472.
This is sufficient for present requirements, therefore, the
quantity to be gotten out weekly should be based on shipments,
so that the quantity in stook oan be kept up to about 10,000.
REPRODUCERS, MODEL “H" j After providing for all machines
and attachments oomplete except reproducers, we have a stock of
9979. This is sufficient for present requirements, therefore,
the quantity tp be gotten out weekly should be based on shipments
so that the quantity in stook oan he kept up to abont 10,000.
In arranging to carry and accumulate the different quantities
of machines and attachments above specified for stook, the
quantities already in stock should be taken Into consideration,
and if there are more in stook than the number called for, no
more should be assembled until stook is reduced to quantities
specified, or if there isa less quantity in stook than oalled for,
only a sufficient, additional number should be assembled to bring
the total quantity up to the number specified. As quantities
called for, to be kept in stock, Are reduced by weekly .ship¬
ments, additional ones should come through to keep the stook
up to the specif led number.
1/29/09. C.H. Wilson.
Copies to Messrs , Dyer: Hird: Zaremba:
I beg to report to you in regard to my trip to
Camden, N. J . and Philadelphia, Penna. on January 28th' and 29th,
1909, as per your instructions.
The Victor Talking Machine Company, Camden, N. J.,
are now working 54 hours a week ( 7:00 A. M. to 12 noon, and
12!30 P. M. to 5:15 P. M. ) Mondays to Thursdays - 9-3/4 hours
per day. Fridays 10 hours, and Saturdays 5 hours. They are
employing 781 people.
At the office of the Company I was told that I came
at a very had time to lock over their plant, as this was one of
the dullest months in the year, and a large number of their em¬
ployees were taking a much needed rest (for a few weeks or a month)
as they were working very hard, day and night., during the month of
December, as they were hardly able to fill their orders for holiday
machines and records. At the present time they are unable to
fill their orders for Victor Victrolas (the $200. 00. machine) on
account of their Cabinet Department being so much behind with their
They said that their business was now very quiet
in regard to their other makes of machines, as their dealers are
pretty well stocked with the $10.00, $17.50, $25.00, $30.00 and
$40.00 machines, as, during the last year, they have not been
putting out machines and records on the installment plan as they
were doing previous years, hut were devoting more of their time
to the higher priced Victor goods, and making cash sales to the
people who had the money to spend to entertain their friends at
home during the evenings.
She Victor Company is now catering to the educated
people of the country, who are fond of music, and are willing to
pay for the best, and there is no other Talking Machine Company,
or Phonograph Company, who have the class of records to put out
that will stand the test the same as the Victor Company have and
are putting out.
They were explaining to me the difference between the
recording done by the Victor Company and the recording done by the
Edison Company. They said that the pdison Company was selling a
number of phonographs and records in the small towns and country
places, as they were making records of the popular selections and
catering to that trade, but when the hard times struck the country,
a year ago, the Edison Company had nothing in the way of records
to offer other than their popular selections, and the business must
have fell off considerably in the large cities when a number of
people were out of work and others working but half time.
They said the hard tinies had no effect on their sales
during the last- year; they did not sell as many of their popular
priced machines as they did the year before but their sales of
Victor Victrolas and Victor Auxetophones (their higher priced
machines and records) they were unable to fill their orders for
them, and they are behind on their orders now. It will take them
2. ‘
a considerable length of time to fill the orders they now have on
their hooks for Victor Victrolas.
They said that during the past few years their
business had increased to a marvelous extent, as they were doing
more than 65^ of the business now done in the cities in the country,
as the wealthy people, who are educated, have acquired a taste for
high class musical and operatic selections, and are now purchas¬
ing Victor machines and records* They have records by renowned
musicians, and the greatest operatic stars, which no other Talking-
Machine Company, or Phonograph Company, are putting on the market*
They said to go into the marvelous growth of the
Victor Talking machine Company, and the business Which they have
built up during the last eight years, from a very small beginning
to the largest and best Talking Machine Company ir. the world, would
show that their plant in Camden, IT. J"*, is the most complete plant
i n the world, and with the machinery and special machines which they
have in their buildings for tuning out their machines and records,
is valued at nearly $6,000,000.00, and the story of the Victor
Talking Machine Company's success in putting a luxury on the market
is marvelous, and the poeple who purchased stock eight or- ten: years
ago are well satisfied with their investment. The business is
increasing each year with them, and as they have no competition to
speak of, the prospect looks bright. I inquired of them what
effect the cylinder business would have on their trade if the Phono¬
graph Companys would put on the market the same class of records
that they are now putting- out. They said they did not think the
Phonograph Companys would pay the talent the amount of money that
they would ask, and as most all the famous artists are now under
3
contract with, the Victor Company, they do not see whom they could
get to make records for them that would compete with the famous
operatic stars who are now under contract with their Company, such
as carUBO, Calve, Tamagno, and others. I was also informed
that they paid Caruso '$45, 000.00 last year for commissions on his
records that they sold, and during the year 1909, the Victor Co.
are going to make a big cut in their magazine arid newspaper adver¬
tising. The money taken from the Advertisement Department is going
for extra high class .talent, as there has been such a demand during
the last year for their high class records that they think it will
pay them to get the best that money can purchase.
They said they have spent considerable money during
the last few years advertising their machines and records, and the
Victor goods are now well known in all parts of the world, so they
do not fear competition from any others who are now in the business.
I was then introduced to the guidfwho was to show me
through the manufacturing departments of their plant. Ho visitors,
they said, were allowed in their Recording Department, as that was
one of the secrets of the business. We went from the office to the
buildings across the street, which were numbered 1, 2 and 3, and
the guid said that they were employing now nearly 1,000 people in
and about the plant. He said that there were a number of their em¬
ployees now taking a vacation on account of business being very
quiet, as this was their dullest time of the year in the business,
and that about February 15th things would begin to improve with them
We entered the Mixing Room on the first floor, where
they have four steam rollers which the material. for the records go
through. The guide informed me that the material was mixed
4.
in their building on the other street, and brought over from there
to go through the steam rollers, where the material was rolled out
flat, and from there to a stamping machine, where it was stamped
and baked, then broken into squares of the required size and taken
up to the press room on the second floor. There were four steam
rollerB,bu.t only one was in operation, and one stamping machine.
On the second floor, vtfiere their press room is locat¬
ed and where the records are made, polished and put into envelopes,
they are also packed in boxes containing twenty-five records.
While in the record or press room I counted a hundred and twenty-
two presses that were in operation. They were making single records
at the time of my visit to the room. I wanted to see them making
the double disc records, as that was what I came over from Phiiade-
phia especially to see made, but they were working on an order for
single disc records.
The Third floor is where they do their grinding.
The fourth floor is where they do all of their nickel plating
and poliching.
In the machine Department things looked very quiet.
There were a number of stamping machines not in operation, and a
number of other machines, such as drills, screw machines and planers,
not running.
They have a special department where they make and
test the motors of their Auxetophones. The motors which they
use in their Auxetophones, they said, were manufactured by the
Y/estinghouse Company. In the motor Department each employee has
a special part of the work to do, and if there is anything wrong
with the motor, they' know v/ho is at fault.
5.
The guide that went with me through all the Departments of the plant
was well informed, and acquainted In all the Departments of the
Factory, hut he would not say what their output was at the present
time , In regard to the number of records they were turning out
daily, he was unable to say if it was five or fifty. records , as
the number turned out daily depended upon the orders received for
them. Sometimes things were quiet, as at the present time, and again
they were rushed with orders to be gotten out in a hurry.
In regard to the number of machines they were turning
out daily: I could get no satisfactory answer as to the output at
the present time.
When we entered the first room in the building I
began to count the number of employees who were working in the
different rooms which we entered, and after going through all the
departments in buildings 1, 2 and 3 I found that my counter had
registered 732 employees.
At 52.15 P. M. I was at the building, corner of Front
A linden Sts., where their shipping department is located, and where
the motors are put into the cabinets; also their general repair
department. I counted 49 employees leaving that department, mak¬
ing a total of 781, and I do not think I missed any in the several
departments that I went through. I. did not get the number of em¬
ployees working in the Cabinet Department.
i^eoJcat - yr\-0~v^. (
_ 1 ' W'' l9of
% A^nt «ra^ it-i^ 4C=f-tu —
u ~ J^-nuU, - cu ^'—rri 333
1 ^ ~a~± 1— -r-r *-*■
Dear Mr. Edison;- lU-*-**—-4^ *£ ua>=w *- _ y
r teivm
1. Ftbb.MA
l hWMfcLPYEB^
The follovdng is a copy of a letter received from J. H,
Spitlsr, Edison Dealer, at Bradford, Ohio:
"Bradford, O.iTan. 31st, 1909.
Edison Phonograph Co.,
Dear Sirs;-
Permit me with all the vehemence that in me lies, to enter
my protest against omitting the Announcement on Edison Records,
One of the grand features in Edison Records over all other
makes has been that you could always kno what you were listen¬
ing to - How the busy Dealer will have to waste much precious
time: answering the questions, "What is that?" "What Tune was
that?" What is the name of that Record" and hundreds of other
similar questions; Again many persons have formed the habit
\ of "taking down" the names of Records as they he a them and somfe
\ time they expect to, and do huy Records they thus heard played.
V I protest for, many of my customers also:
\ ^ The label on die lid of the Box is just die thing needed,
/ many of my customers appr eciate that ib w departure. You might
/ omit "Edison Record, " and no one know the difference as Edison
( Records are so superior that people would know they were listen-
/ ing to Edison Records.
[ No plain "liar" need' tell my customers that Amberol Records
} are not a Great Big Success - I shall not order any more "Old
I Style Phonographs unless by direct request of tie. Customer - I
V expect to equip many machines with new attachments-Have done so
\ to the' first Standard I sold and h aye many promises for the
\ future. "
Your s vs ry. truly ,
B. C, IlcChesney.
Frank L. 3yer, Esq.,
Pres., National Phonograph Co
Orange, N. J.
My dear Mr. Dyer:-
I am continuing the efforts which I have taken on my
own initiative to effect, If possible, a settlement of the pending litiga¬
tion between the New York anti other phonograph companies and the Edison
interests. If an offer of $.175,000 and an agreement by the Edison in¬
terests to waive any payment from that sum on account of stock held by
them would be entertained, I might succeed in connection with the pro¬
position, which I have in mind, of obtaining' a stun net exceeding $25,000,
in order that Mr. Andem should realize on the settlement. The expenses
of the litigation, which, under his contract, must be borne by him, have
been so enormous that there seems to be but little, if any, margin for
him.
Of course I understand the position taken, hut it is my endeavor
to work out, if possible, a preposition which I can submit, to both sides
with some hope of success. Although not much encouraged, I shall continue
the effort until it is evident that the effort is useless or until it is
successful.
p.s. 31^
Very truly yours.
386
MEMORANDUM
(buzz'd - 7?Ca
Mr. Dyer Smith:
2,42/09.
ill’. Edison la speaking to mo about trie new appli¬
cations on shellac record compoai tions. m.-tuo it clear that he wants
to cover two separate things. As j. understood, him, one is the
composition in which shellac is dissolved in a solid solvent
such an naphthalene or stearic acid, the proportions being such
that tor solid solvent will cryotuliac and practically separate
.iron the so line no that the rocord surface is pare uh'llac.
The other is a true mixture oi* shellac dissolved in a solid solvent
under heat, the proportion oi the shcliao being very much higher,
than in the first case. Such material is moulded and chilled
like any record composition.
I hand you herewith the first application, which wants to be
corrected, and I promised Kr. 'Edison to let him have both tomorrow
afternoon.
KD/iW p. D.
PJk&tv 'faatJl'
V
A
Ax
' ^
y-K
' /
■ with my suggestion of yesterday to you
relieving statement cf the negotiations
bring about a settlement of the jiendlng
3’rank L. Dyer, Esq. ,
Pres. National Phonograph Co.,
Orange, N. J.
My dear Mr. Dyer:-
Xn aooordanc
over the telephone, I write the
undertaken by me in an effort to
phonograph litigation.
I have seen Mr, Tomlinson tc-day and again discussed the
matter with him and with Mr. Tompkins. The natter can be adjusted I
believe for $175,000 in addition to £25,000, making a total cf $200,000
to be used as heretofore stated, excepting, however, the suits brought
and prosecuted in the State Courts of New York by Ur. Hyman, I have can¬
vassed the situation so thoroughly and from so many points of view, that I
believe no better settlement to be possible, and, in my opinion, the
settlement is one which, for many reasons, should be made by both sides.
Of course, as T have heretofore stated, in expressing any opinion with
regard to the advisability of settlement, X feel sure that you will take
into consideration the fact that I conducted the complainants 1 side of the
litigatu.cn for so many years. You and Mr. Buckingham knew thoroughly
all the points of the defendants' side.
One reason why it is not possible to settle the litigation upon
more favorable terms to your Company is that the figures would be so low,
in view of all the circumstances, that it would be to the interest of
Mr. Andem and the New York Company especially, to take their chances cf
a greater success rather than to accept a settlement less favorable than
that above stated. For this reason nothing less will be considered. It
is sain, and I belisve correctly, that it will be next to impossible
hereafter to obtain the consideration Of so favorable a preposition of
settlement. In view of the very large amount heretofore talked of as the
probable outcome of the litigation, the present figures are conservative*
What I have in mind is the payment of $150,000 to the New York
Company and $25,000 to the other companies represented by Mr. Andem, and,
in addition, the payment of $25,000 to Mr. Andem as indicated, making a
total of $200,000. Mr. Tomlinson criticises the payment of any uart cf
the $175,000 to the other companies and believes that it all should be
paid to the New York Company. This, however, would not in . all probability
meet your views, and I believe that $25,000 paid to the other companies
would be such a consideration as would enable Mr. Andem, under his con-
tracts, to give valid releases and to cause the suits to b.e discontinued.
- -4. 4. wi;P\ regard to Mr. Hyman, he, as you know, has very large ideas
ana it is not believea that it is possible to obtain from him an agreement
to accept any reasonable sum as a compensation for his services upon a
settlement. It is proposed, however, to ascertain from him whether if
a settlement can be effected, he would be willing to accent $20,000 or
$25,000 in full satisfaction and to consent to the entry of orders dis¬
continuing the New York State Court suits. Mr. Tomlinson is to make
this inquiry through Mr. Andem to-day or to-morrow and is to let me knew
F. h.
Feb. 15/09.
the result. In the event of Mr. Hyman's willingness to accept said sum,
then that amount would have tc he provided in addition tc the amounts
above specified; hut in the event of Mr. Hyman's unwillingness to accept
such a sum, then, if a settlement is to he made, it would have tc made
in such manner as to leave Mr. Hyman's compensation to he determined hy
fifty per cent, cf the amount which he might succeed in recovering in the
State Court suits against the dealers. Should Mr. Hyman fail in the Court
of Appeals, that would he an end of his claim; should he succeed in the
Court of Appeals, there are other reasons why he could not recover any¬
thing.
Of course, a release hy the New York Phonograph Company would
free the National and other Edison Companies from ar.v possibility of
interference with future business. The National Company being free to
do business within the State of New York, every dealer would he free to
carry on business in the future and Mr. Hyman's claim would necessarily
he limited to past damages or profits. — c. z. £~a ~C&c^
A settlement upon the foregoing plan presents many obvious ad¬
vantages as follows ;-
First. The amount recoverable in the federal court upon the
accounting in the New York stj.it, and the costs of the suit and of the ac¬
counting would be satisfied.— So^o
tiL*. SC^icc ' O /
Second. The future business cf the Edison Companies will be
free.
Third. The great legal expenses heretofore incurred ’will be
ended, except so far as it may be necessary to appose Mr. Hyman.
Fourth. Any future expense in changing the methods of manu¬
facture to avoid patented inventions will be unnecessary.
Fifth. The' possibility of the Circuit Court of Appeals holding
that tha contract rights cower phonographs and supplies irrespective of
patents, would be avoided.
Sixth. Judge Hazel's preeent favorable decision will stand.
Seventh. Bonds exceeding $160,000 in the federal court will be
cancelled.
Eighth, No further bond could be secured in any suit pending in
the state courts because the right to do future business would be estab¬
lished.
Ninth, Your time and the time of others will not be diverted
from business considerations to this pending litigation.
Tenth. The large expenses incurred for printing, traveling and
*hx like items of disbursement will be avoided.
Other advantages of settlement exist, but a consideration of
the foregoing will, I think, convince you that as ajbusiness proposition,
3\ I. D. -3-
it is cheaper to settle upon the basis stated than to expend the same 3um
in litigation and then, perhaps, be obligated to pay in addition a sum
considerably larger.
Kindly understand that in the same way that t have put before
you the advantages and advisability of settlement, I have urged the
matter upon Mr. Andera, the New York Company, Mr. Tomlinson and others. I
have tried to bring about a meeting of minds. I think that the minds
should meet upon the plan above outlined. As suggested, I will see you
to-morrow afternoon if you will let me know by telephone at what time.
Believe me,
Very truly yours,
Feb. 20, 1909.
1 2r, Thomas A. "Edison,
Fort Myers, Florida.
Dear Mr. "Edison:
On Tuesday I will write you in detail regarding •
"business: for the week ending to-day; it has "been entirely satis¬
factory.
My negotiations with Mr, Hicks regarding the Hew York case
are still continuing, hut I do not see any prospect of a settlement
that will take care of Mr. Hyman or the suits of the other local
companies. Mr, Hymen has a contract, with Andem under which he is
to raoefve a portion of any proceeds obtained in suits’ brought
against jobbers and dealers in Hew York. . Should the main case be
settled and a release obtained from Andem and tho Heve York Company,
it would prevent Hyman from enjoining jobbers "or dealers, but he
could still sue them for past damages and thereby greatly annoy and
harrass them. lie, Hicks seems to feel that Hyman's contract can be ’
set aside on the ground of "champerty" , since he as a lawyer agrees
to bring the suits, pay for them and be paid out of the proceeds. .
If that could be done, Hyman would be disposed of, "
Regarding the suits brought by the other local companies,
the Hew England case could bo settled by a release from Andem,
because we control that company; and Andem owns the Ohio company
and oould settle that oase. "Andem could also give ub. a .release
under his -oontraot With the other companies, but • ■:
.2. 2/20/09. Thomas A. "Edison.
NATIONAL PHONOGRAPH COMPANY
■ entirely free the situation, "because the other companies could
undoubtedly still go ahead and annoy us. Their position i3 much
weaker than the New York company, because they slept on their rights
for a good many years, and besides, I think it very doubtful if
it would be possible at this late date for the other companies
to prove their contracts. I should regard it as extremely improba¬
ble that anyone could be found like tfahnestook who would .be willing
to go into a long litigation, especially in view of the fact that
the present situation is distinctly favorhble to us. The whole
situation seems to be that an arrangement can be made which in all
human probability would relieve us of further annoyance, but there
is not the certainty in the matter that would warrant me in .telling
you positively that every danger was removed. However, 1 will
keep in touch with Hr, Buckingham and Judge "Wallace and be guided
very. largely by their views, although nothing final will be done
until I telegraph. you, if necessary, and "get your consent.
I tend .you he rev/ it h copy of the opinion of the Court of Appeals
in Philadelphia reversing the. decision of Judge Buffington and
sustaining the validity of your, reissue patent Ho. 12,393, copy
of which I also enclose. Judge Arohbald, who writes the opinion,
has taken a very sensible end broad-minded view of the patont.
Yours very truly,
"Eno-
Pob. 23, 1909.
Hr. Thomas A. Edison,
Sort Ityors, I'la.
iy dear Hr, Edison? •’
1 had a long talk yesterday with Hr. Buckingham
in reference to the Hew York case. The thing we have most to fear
is that the U. S. Court of Appeals may switch oyer and decide that ’
the rights of the Hew York Phonograph Co. are based on contracts
and not orippatonts, and therefore apply to all phonographs and
records. Judge Wallace, however, has expressed himself very f irci-
hly that the Court will not do this, and I fool convinced that he
is right. This being so, Hr. Buckingham and I feel that it would
be unwise to make any further concession to the Hew York people
and that no settlement should bo made unless everything was cleaned
up. To make a settlement as they now propose, that would not
take owe of Hyman nor the other looal companies, would leave
us open to further attaoks, which would be annoying, although I do
not think that they would amount to anything, Mir. Buckingham Is
therefore to tell Hr. Hicks that the offer of $175,000 stands,
unless, of course, the Circuit Court of Appeals decides the case
before they accept, and that i^ must mean the cleaning up of every¬
thing, not only of the Hew York Company, but of the other’ looal
companies as well.
Yours very truly,
pib/ivav
a oi' two
‘T L 0x Uila soiling p:
[7
•n S- ^ ^ , . . ,
■nis i^r r coord, rirres-
• attribution ia national phono^^8W» °olas that the oonpoooris
artiot who ,h, *“ ”,i"e *"“* ««■ value ls the
i. „ z ,i :t if - — - - u pUa,
*>«— 1 1" n<.i ... :r.T ***** o“®“y t;“" •»•*«>
°»«®> * t™ „„,t, “ "*'”*"■* «“«• ««Od W „
j;iar. £, 1909. 0
■Jr. Thomas A. PdiBon,
Port hyera, I-’la.
Hy: dear Hr. Pc! i son:
P.oturning to the office this morning, I find that
very little has happened during my absence , although things are still
very wuiet .
Much to ray surprise and chagrin, in the very last days of
Congress the copyright bill v/as passed. I liave just loolcod over
the Congressional Uocord and find that there wan vniy little debate
and not wen tho forraalit.y of an Aye-nnd-ITo vote. The law goes
into effect on July 1st next, but it does not apply to copyrights
taken out before that date; so that we have time enough t o take care
of the situation. In other words, even if a song in copyrighted
on July 1st, it probably would not become popular for some months
after that, so that it will be probably sometime in tho Pall before
we are oompelled to Beriously meet the si
3/8/09. T. A, ‘Edison,
One very unjust provision appears in the ' Act— That royalties
are payable on records manufactured, and not on those whioh cure
sold, so that the manufacturers will hive to too careful not to
materially go ahead of their actual orders.
In writing ilr. Currier, Chairman of the House Committee, on
5'n tor nary 23rd last, when lie submitted the bill to me for cornu nt,
I said:
j ' "I object very strongly ;o the idea of charging a royalty on
I all records manufactured. Tills seems to me to toe unfair, since
the composers engirt not to expo ct manufacturer’s to pay royalties on
records which are not sold, nor, I cuuoose, on records sold in
foreign countries. At the present time we make up our stock of
re cor s several months in advance of their going on sale and we are
frequently loft v. ith large amounts on hand if the sales do not come
up to our expectations. Vo certainly ought not to pay royalties on
thousands of records which moy never leave our bins and which way
written you, it seems only fair that some provision should too node
for tailing care of records Which arc returned to us from jobbers or.
dealers and which they arc not able to sell. These returned
records arc broice:: up and' ho, material r incited. 2 figure that
this will amount to about 10£ of our entire output,. I think that
the royalty ought to too pe,id on, for instance, 90* of the records
sold and the remaining 10;, should toe adjusted within one yiv, ac¬
cording to the number of records which arc returned, "
iir. Currier uid not reply to this letter until after tlu; bill
toad actually passed, mid, as I have said, its passage v/as s. complete
..surprise to mo and apparently for everyone else except those who
appear to have been on the inside. When Tie did write he said that
the bill was a matter of compromise between two extreme factors,
one side advocating unlimited and exclusive rights and the other
side opposing the grant of any rights. Ee says that he personally
thinks icy objection should have prevailed tout that he accepted the
bill as the best compromise possible, and that any injustice can toe
remedied toy amendment. I doubt, however, if anything can toe done
at the extra session of Congress, so that we may not expect any
.modification until next Winter.
MVlIOMVr bHOMOCHVbH COWbVMA
3. 3/S/09.
T. A. Edison.
In the meantime I trill gee Hr. Joinaon of the Victor Company
and arrange to have the two companies stand together in opposing the
payment of any royalties except in case of absolute necessity.
r do not think we will have any difficulty in getting all the
songs we wont at very reasonable prices, and of course tbs -;'aeid of
music already in existence is tremendously largo.
I will also propose to 3Tr. Johnson that thn two companies
jarrango , after the lav goes into affect, to make a test case,
because I still think the lav is unconstitutional.
in this connection, I would like to have your opinion on .he
following question: Last Summer I saw Victor Herbert, with the
idea of Jus allowing us to use his name on a musical critic, ho to
select proper musical pieces and to pass on their technique and
quality. At that time it was suggested that for ouch records
as were thus selected and approved by him he should receive o
royalty of one cent each, with a guarantee of $2500; 00 for the
first year. In otter ..-orris , if we sold 1,000,000 records made
under Ms direction we would pay him 010^000.00 per year. Those
negotiations wore broken off by !ir. Herbert because he was afraid
that to enter into any arrangements with us would embarrass him in
connection with the copyright question, but now that the copyright
lav; has been passed hs has brought up the matter again and has asked
me ii we would care to make the same arrangement. You we-o in
fa.vo3 of the arrangement at the time I spoke to him, but I would
like to know if you are still in favor of it? Prom an advertising
standpoint I think it would be a good thing, so that if you approve
I will go ahead and have the matter fixed up along these lines.
Aylsworth'a scheme for extracting records by vacuo has turned
out to be vary oucce g s^,oWld b£ are now equipped and
4.
3/8/09,
T. A. Edison,
are running. By this arrangement we are able to got along with
about 30 moulds less per machine than before. The records come
out in about three seconds. The difficulties at first encountered
v, ei' e duo to the fact that the suction was put on too soon, when the
material was quite soft, so that the walls were likely to collapse
too muoh. A number of the big records have been moulded, and I
jexpoot to tear them this afternoon and will report later. tie.
I Weber is- mating progress with the big machine and 1 hope there will
Abo something definite to show you when you return.
I hope that you are having a good restful time and arc feeling
in fins steps .
•%
r i^'t
' - — — — lion day night ,
Mar. 8, 190'?.
i Hr. Thomas A. Edison,
• I'ort Myers, kia.
|Tly dear Mr. Edison:
! 1 cannot lot the day go by without writing you
about the big record, which I heard this afternoon. It was fine,
hut not so loud as I hoped; in fact, it was not any louder, apparent¬
ly, than the ordinary record, hut I understand that Miller made no
effort to increase the loudness. The quality was beautiful and all
the details seemed to bo perfect. I heard many instruments that
never 'would have been reproduced on the ordinary record. The
record strikes me as being somewhat fragile, but aim’d, tough com¬
position would solve every difficulty.
Aikon seems to feel that with a reoord of this size, the taper¬
ing mandrel is out of the question, not only because there would
necessarily bo much loss by incorrect reaming, but principally
because of its length. In order to have thick enough material at
the thin end, the thick end 'would ha 're to be too thick. Probably
an expansible mandrel of some type will have to be used so that the
wall will bo of the same thickness throughout.
I verily believe that this record is the greatest improvement
that has ever been made in the talking machine business will be
brought about.
4
March 9, 1909.
;Mr. TOldridge H. Johnson, President,
i Victor Talking Joachims Co.,
Camden . ". ,T.
My dear Mr. . Johnson:
I suppose you have boon advised that the
copyrignt bill b : cacao a law, and X ir.ngino you v/ere us surprised
as I v.ns at the indecent haste with which it was rushed through
Congress in the last hours of the session. There was no debate
whatever in the S. suto, as .'..spears from the Congressional Record,
and in the house the debate was purely perfunctory and mas flagrantly
misleading, the statement being frequently made that the bill was
acceptable to both sides. In neither House was th re the formality
of an Aye -and -ho vote. There is no use, however, for us to repine,
but wc must accept the bill as nn actual reality, fortunately,
the law does not go into effect until July 1st next and does not
apply to copyrights registered px-ior to that date, 30 that it will
probably be sometime in tile fall before v/e are aotually confronted
by the situation.
It seems to me that me should have another talk about this
natter and reach some definite conclusion, and we might decide that
it would be desirable to enlist with us the co-operation of Mr.
faston. I feel sure, if our two companies ctand by each other, we
can substantially . .^e^^te^si^W^n^^barraaament, but if that
3/9/09,
E. R. Johnson,
ia not done we will simply be placed at the mercy of the publishers
and will be required to pay the full toll.
Lot me know when I can sec you either in Hew York or Phila¬
delphia. Friday of this week will be a very convenient day, but
I can meet you at almost any time on short notioe.
Yours very truly,
fld/iot
President.
Port Myers, Fla . , ,3/l0/09.
F. L. Dyer.
If Buckingham has seen all the contracts Between
Andem and Hyman and their confirmation hy New York Company, and
thinks Hyman cannot injure ub hut must look to Andem, and also if
Andem-will settle with outside .companies in such manner that
company accepts amount in full settlement same, receive good delivery
them, I would Be .willing to settle on terms mentioned.
r READ THE NOTICE AND AGREEMEN'
y '
If ON BACK. J
Mr. Frank L. Dyer, President,
National Phonograph Co.,
Orange, N. J.
My dear Mr. Dyerj-
Your letter of March 9th, concerning copyright situation, received.
I am very anxious to have a talk with you over this matter, but cannot
meet you this week. I think I can arrange it next week.
I have not yet received a copy of the bill as passed, and I understand
there were some amendments made at the last moment. While 1 do not know anything
about the legal side of the case myself and have not as yet received an opinion
from 'our legal department, I am inclined to believe that the bill is likely to be
attacked on some constitutional basis, as most of the attempts of Congress to
regulate rates seem to have fallen by such methods lately. I believe, however,
that now is the time to make a practical arrangement with the publishers, before
such a movement begins.
The question of inviting Ur. Fas ton to cooperate with us will, I think,
bear considerable discussion.
I will communicate with you early next week and arrange an appointment.
X would like to have Mr. Ceissler present if you do not object.
Yours very trulj
H'tAflaonOHH JAHOITAM
30
fees
York
lout, )
: independent or any recovery which mi;.
ac to the amount of this recovery, 1!
.e to agree. hr. Buckingham las ulv.a;:
iplo would not recover anythim; norm t!
limits that if they re cave red any subs
c to pay the '.'.hater • s
me dollar. This
; he secured against
lawyers have never
felt that the Hew
: nominal damages, •
iti&l amount it would
■hly he a large sum, although he line never given any indication
i at that sum \7ouia he. judge Y/allaco, on the other hand, is_
fearful of the results of an accounting. And it must also oe
aberod that when the accounting ir, once settled it does not
;v-e case, because, the Court having held that the contract runs
until l‘j.19, there might he an additiond recovery tor that entire
period, the accounting depending upon the particular measure of
dorciv-eQ adopt d hy the Court. l.'y personal view is that tho law on
the subject of damages is so involved and so much hardship is imposed
oil successful litigants that the Hew York Company would not recover
anything, but there is still the danger present, and you know that
in this suit our calculations have frequently been grievously upset.
Remembering , therefore, that in the matter of the accounting alone,
which -would almost surely be gone ahead with, we might very readily
spend $100,000 for lawyers 1 fees and oostB, it would undoubtedly
be worth a good deal to remove the danger of an ultimate recovery
against us and a repetition of the same proceedings from time to
time in connection with damages which may hereafter accrue. All
2. 3/11/09. T. A. Edison.
YMASMOO HSAAOOHOHH JAMOITAW as
this is on the supposition that from now on everything is absolutely
favorable, but there are still further dangers. Judge Hazel hold
that v/e v/ere in contempt of the previous injunction by infringing
the patent on shrinking the records out of the moulds; if the Court
of Appeals should hold, as we would hope, that this particular
patent was not infringed because Judge Platt had limited it to an
expanding process, and should further hold that the praotice of the
process by us at Orange oould not infringe any rights limited to
the State of New York, it would practically settle any possibility
of recovery under that particular patent and would remove the danger
of an injunction. The chances, however, are that tlie Co“rt would
affirm Judge Hazel's decision, because that, being the easiest course,
is the one that Appellate Courts generally follow. In that case
the difficulty would then arise whether by changing the process to
provide for a forcible collapsing by vacuum the patent had been
avoided. That question would come up on a renev/ed motion for
contempt. I believe that the patent could not be interpreted
to sover more than a shrinkage by change in temperature, but
nevertheless, it might be held that we were forcibly performing the
same operation by atmospheric pressure that has heretofore been
performed by a reduction in temperature and v/ere therefore using
an equivalent process; and if the Court should take that view
it is not unlikely that we would be subjected to a much heavier fine
than §2500. Furthermore, in such a case, we would still have the
patent confronting us and would then have to try the move of giving
up our dealers' agreements in New York State, and this would be
certainly embarrassing. If the Federal Courts in New York
should hold that we were violating the rights of the New York
Company under this patent and that our vacuum process did not avojjLd
it, the other local companies; representing Ohio, Illinois,
Michigan, Wisconsin, Minnesota, Kansas and Kentucky, Y/ould undoubt¬
edly then press those suits forward and ask for preliminary injunc¬
tions, and if they could prove title, those injunctions might be
granted, so that we would then be confronted with the necessity of
giving up our agreements in those States, and even then, perhaps,
we might get snagged. On this point, my personal view is that the
other local companies could not prove title and that their rights
are so much weaker than those of the New York Company (since there
was no confirmation agreement and no attempt to maintain their
rights) that preliminary injunctions would not be granted; but still
this doubt and danger is present. The third course that might
be taken by the Federal Court of AppealB in New York would be to
go further than Judge Hazel and hold that the rights of the New
York Company are not limited to patents, but are contract rightB,
giving them the exclusive lloense to sell phonographs and records
in the State of New York, and if the Court should so^hold, it is
unnecessary to say that v/e would be confronted by a calamity.
No one seems to feel that there is any likelihood of such a thing
happening, but nevertheless it is not out of the range of possibil¬
ity. While such a decision would undoubtedly be fatal in the State
of New York, it would be equally fatal to the suocess of the other
looal suits, because, if based on contract, those suits would be
probably barred by the statute of limitations, and to be successful
they would probably have to be prosecuted as straight patent suits.
So far as concerns the suits whioh have been brought against
our jobbers and dealers in New York State Courts, and amounting to
several hundred in number, you v/ill recall that the test case against
3/ll/09.
T. A. Edison.
.NATIONAL PHONOGRAPH COMPANY
Davega was decided againBt us by Judge Keogh, who held that our
dealers in selling phonographs and records in ITew York State had
violated the rights of the Hew York Company and that the Hew York
Company was entitled to an injuntion and an accounting; hut on
appeal the Appellate Division reversed this decision and held that
the State Courts of Hew York had no jurisdiction on tire questions
since the suits were really patent suits. This decision, while
disposing of the suits in the State Courts, would not prevent the
Hew York Company from bringing similar suits in the Federal Courts,
which, under the theory of the Appellate Division, would undoubt¬
edly have jurisdiction; but if such suits were brought, I do not
think they could be made effective. An appeal has been taken to
the State Court of Appeals at Albany, and that appeal is to be
argued this Fall and we have every reason to expect that the deci¬
sion of the Appellate Division will be sustained, but, of course,
tliis doubt also is present. If the Federal Court of Appeals should
go further than Judge Hazel and decide that the questions involved
are based on contracts, and not on patents, it is very probable that
tho State Court of Appeals would reverse the Appellate Division
and deoide in the same way.
All of these doubts and dangers really exist; some of them are
very remote and others aro more or less imminent. We have staved
off any serious results from 1901 until the present time, and I
have no doubt that if we had been placed in our present position
five years ago, when the Federal suit was first argued and a good
ma.qy important patents were 3till in existenoe, we would be in a
very serious position, which could not be settled for anything like
the proposed settlement. After going over all of these points
with LIT. Buckingham v/e both together drafted up the telegram which
was sent you. The proposition is to pay $180,000 for a settlement
of the Hew York situation, which includes $25,000 on the side to
Andem (and I 3uspeet $5,000 on the side to Hicks) and $30,000 for
a settlement of the other local suits.
The settlement of the Hew York situation should in my mind
involve the following:
1. A dismissal of the Federal suit, a consent that the
Federal Court of Appeals shall, if the Court agrees, reverse the
decision of Judge Hazel and deny the motion for contempt and that
the accounting shall be waived.
2. A release from Andem, under his contract with the Hew
York Company, and an assignment of all of his rights thereunder.
3. A release from the .Hew York Company, approved by the Board
of Directors and ratified by the stockholders, or at least, by
practically all of the stockholders.
4. A transfer to us of suoh stock as the Andem and Fahnestock
interests control and a consent that we shall withdraw the $,000 ’
shares from the Central Trust Company, which, with our own stock, '
would give us praotically all of the stock which has so far been
located.
5. I imagine it will also be possible to arrange so that
the present directors will resign and our own directors be substi-
3/11/09, WAHMC
T. A. Edison,
OO H1AHOOWOHS JAHOITAW
tuted.
6. The Hew York Company will grant a license to us and to
all of our jobbers and dealers now or hereafter appointed under
their contracts.
Perhaps Hr, Buckingham may conclude tliat other precautions
shall be taken, -but it aeoms to me that if the above things are done
there could not be any question as to the safety of our position.
Of course a single disgruntled minority stockholder might attack the
settlement, but it would only be necessary to show that the direc¬
tors had acted according to their best judgment and discretion.
So far as all the other local companies are concerned, Andoms
contracts give him the right absolutely to settle them, except in
the case of Kentucky and Kansas, and in these two latter cases his
oontraot provides that any settlement must be ratified by the com¬
panies. Andem can therefore give a release and an assignment .
under his- contracts in sill the cases end can agree to have them
discontinued. If the Kentucky and Kansas Companies disapprove
of Andem* s settlement, they would have to begin those two suits
over again, which I doubt very much if they would do, on account of
the expense. If the Kansas and Kentucky suits wore again started,
they certainly ought not to reach a more favorable condition than
the Hew York Federal suit, and if we can get the Federal Court of
Appeals to consent to a reversal of Hazel's decision, there would
be no precedent for the Federal Courts in Kentucky and Kansas to
follow. Besides this, to would have an assignment from Andem
of his contract, which would give U3 60/ of any recovery, so that
I feel quite sure we would never hear from these two companies;
but nevertheless this possible doubt must be recognized." Of
course, Kentucky is relatively fmimportant, but Kansas is a good
State. So far as the Hew England Company, is concerned, we control
the 3tock, and it would»only be necessary to get a release and
assignment from Andem and an agreement with the attorneys to dis¬
miss the minority stockholders* suit novr pending in the Hew Jersey
Chancery Court.
The only remaining doubt is in connection with Hyman, as stated
in my telegram. Hyman has a contract with Andem under which he
(Hyman) agrees to prosecute Edison jobbers and Sealers in Hew York
and to pay all expenses, receiving 50/ of any reaovery. In the
first place, it is very probable that such a oontraot oan be set
aside on the ground of Champerty, as it is highly, improper for a
lawyer to make such an arrangement. But, if j^aSS^'does go ahead,
he must first obtain a reversal of the deciaion’wf'the Appellate
Division, and the ohance of doing so is very remote, and would be
even less if Judge Hazel * s decision remains undisturbed by the
Federal Court of Appeals. If, however, the Hew York State Court of
Appeals at Albany reverse the Appellate Division and sustain the
decision of Judge Keogh, Hyman could not obtain an injunction against
our jobbers and dealers, because they would now be operating under
a license from the How York Company, he could only proceed for
damages, and I believe if a settlement is made he would be surround¬
ed by so many difficulties that he could not expect to succeed.
So far as Hyman is concerned, I am informed that he is an impossible
man to deal with; but I understand from your telegram that you are
willing to leave this matter to the best judgment of ITr. Buckingham
and Judge Wallace, and if they believe Hyman cannot hurt us, to
5.
3/ll/09,,
fnASMOS H-1AHOOMOHS JAMOITAH
go ahead without "bothering about Mm.
I am going in town thi'a afternoon to sec Mr. Buckingham so "
as to start the ball rolling, but lie has already arranged with
Kr. Tomlinson to go before the Federal Court of Appeals, in order
that there may be no decision handed down on the contempt motion.
If anything new turns up I will let you know.
CHARLES L. BUCKINGHAM,
nictated.
Thomas A. Edison, Esq. ,
For* Myers, Florida.
Jfy doar Mr. Edison: -
New York, War oh 16, 1909,
I am vary sorry to toll y0u that in the New York suit
the Federal Court of Appeals handed down a decision at 2:30
this afternoon, sustaining Judge Hazel, hut going to the ex¬
tent that we most feared, of holding that the rights of the
New York Company are based on contracts and not on patents.
It is most unfortunate that this decision 3hould have been
handed down at this time, because wo have all been working
towards a settlement of the case on the lines explained to you;
and Mr. Buckingham and Mr. Tomlinson had actually mde arrange¬
ments to go before the Court to-morrow morning and have the
decision postponed.
It is unnecessary for mo to say how serious the situation
is, but Hr. Buckingham and his associates are now working on a
petition for certiorari to the Supreme Court, which will bo pro*
seated in a few days. No one can foresee what will be the
putcomo of this petition, but the chance# are against its
being granted. They tell me that it is probable that the in¬
junction in the Hew York case will be stayed at least until the
Supreme Court denies the petition for certiorari; and if the
petition is granted, the chances of the injunction being still
further stayed are good. The preparation of the petition for
certiorari is being gone ahead with on the assumption that
the New York geople will now break off negotiations .although
there is a bare chance that they may oontinuo thorn.
T.A.B., 2.
Unfortunately, In the oomplex condition of these nego¬
tiations, they have not reached a point where I believe the
New York Company would ho hound to go ahead with them.
I intended to telegraph the substance of this letter to
you, hut Mr. Buckingham was fearful that in some way the in¬
formation might get out and thus show the New York Company
how very serious we consider the situation to he.
Of course at the present writing 1 know very little about
the case other than what Nr. Buckingham has told me; hut I
will keep you fully advised of affairs here.
We will send you a copy of the decision to-morrow.
Hr. Buckingham is also considering the advisability of
presenting a petition to Judge Hazel to have the injunction
made definite, the point being that Judge Hazel, who went fully
into the details of the case, was satisfied that the rights
of the New York Company were based on patents. If the Court of
Appeals finds that those rights are based on contract , it
simply means, not that they have considered the details of
the ease, but that the injunction is broad enough to warrant
their interpretation.
Judge Wallaoe is in Albany to-day, but haB been sent for
and Mr. Buckingham is to confer with him to-morroY/.
Very truly yours,
^ 7, ffoj
/" On Monday afternoon, March. 9th, Mr. Buckingham asked me to
go in town, and he put before me a proposition that had been made
by Mr. Hicks to settle the New York Company litigation for the out'
side sum of $810,000.00, but which would not include Mr. Hyman's
rights nor, possibly, the rights of the Kansas and Kentucky
Companies. I telegraphed Mr. Edison from Buckingham's office
later that evening, after having talked over the case very fully
with him. (Copy of telegram attached). Mr. Edison's reply,
dated March 10th, was not received until the morning of Thursday,
larch 11th. Promptly upoi
eceipt I had Walker telephoi
telegram in to Pelzer, with the request that Pelzer should submit
it immediately to Buckingham, indicating that the chances of making
ettlement were very good e
trging upon Mr. Buckingham the impor¬
tance of making an arrangement with Tomlinson under which a de¬
cision by the Court of Appeals would be postponed until the nego¬
tiations for settlement we re either completed or abandoned. Mr.
Buckingham again sent for me to go in town on Friday, the 12th
inst., which X did, and he told me that he had started to go over
to the Court Room with Mr. Tomlinson to ask the Court to hold up
a decision, but that Tomlinson had asked him to state definitely
that a settlement would be reached, which he refused to do, in
view of the qualifications which Mr, Edison had imposed on us . I
again went over the situation at that time with Hr. Buckingham and
told him that he could assure Mr. Tomlinson that a settlement
would be reached, because I looked upon the possible doubts as
being too remote to be bothered about. I understand from Mr.
morning, but on Monday he and Tomlinson again attempted to get
(2)
together on some statement which would he made to the Court, hut they
were unahle to agree as to who should make the statement, each
feeling that if the negotiations should fall through, the side which
made the request would he prejudiced in the eyes of the Court.
They therefore did nothing with this matter on Monday, hut they
arranged to go before the Court on Wednesday morning and make a
joint request for delay, hut in order to make the matter certain,
Mr. Clark went over on Tuesday afternoon to see Judge Ward for
the purpose of having him (Judge Ward) suggest to Judge Noyes
that the case should he held up; he was, however, too late,
because the .decision had then been handed down. I make this a
matter of record to show that upon receipt of Mr. "Edison's tele¬
gram I immediately urged upon Mr. Buckingham the importance of
having a decision by the Circuit Court of Appeals withheld, and
I repeated to him, both by telephone and verbally, a number of
times, the importance of doing this. It seemed, however, impossi¬
ble for Buckingham and Tomlinson to agree upon the way in which
the request should be made, because Tomlinson felt that the nego¬
tiations might f sill through and that the Court would in that case
feel as if it had been imposed upon.
March 17, 1909. B. L. D.
[ATTACHMENT]
(Copy of telegram sent Mr. 'Edison March 9, 1909)
Mr. Thomas A. Edison,
Fort Myers, Florida.
New York situation, exclusing Hyman, can he entirely closed
up one hundred eighty thousand, which includes extra payment to
Andem. Settlement of all other company suits, except possibly
Kentucky and Kansas, thirty thousand additional. This removes
danger of possible reversal New York decisions and also danger of
accounting and possible preliminary injunctions in other companies'
suits, if decision on appeal goes. against us. Even if decision on
appeal is favorable, accounting would probably proceed. Buckingham
thinks result of accounting would be a large figure or nothing.
To set!,le now would substantially stop further expense. Buckingham
considers Hyman situation unimportant and believes Hyman must look
to Andem for any recovery, also that Kentucky and Kansas practi¬
cally free from risk. Both Buckingham and Wallace recommend
settlement of all cases for two hundred ten thousand. Wallace
believes accounting more dangerous than Buckingham. Remembering
that to continue litigation means much further expense,- possibly
one hundred thousand, proposed settlement may really involve
jeopardy of not much over one hundred thousand, I think we
should settle. This telegram read and approved by Buckingham.
If you approve, would not close or pay anything until everything
satisfactory to Buckingham and Wallace. Wire me immediately
your views.
F. 1. Dyer.
Ur. Frank L. Dyer,
President, National Phonograph Co.,
Orange ,N.J,
My dear Ur. Dyers-
Since writing to you last week I have suffered a severe attack of acute
indigestion, which practically put me out of business until to-day, and I am still
a bit wobbly. I have gotten behind in my regular office work and, if satisfactory
to you, would like to put off my visit to New York until next week, about Wednesday;
I will communicate with you further as to the exact date, in order to make sure that
it suits your conveniencs.
Uy impression is that v/e must get at this question vigorously and intel¬
ligently us soon as possible. I have an idea that the music publishers will under¬
take to get together and prevent, anyone from publishing copyrighted music and, at
the same time, make an effort to amend the present copyright bill. I am not at all
sure that the mechanical reproducer clause is not a clover move to overcome the pre¬
judice of Congress against attacking the mechanical playing industries, with the
idea that the restricted royalty business can be attacked on constitutional lineB.
Our attorney seoms to think that the clause comes within constitutional lines, but,
of course, he realizes that such a question depends largely on circumstances and the
personnel of the Court considering the matter. Uy impression is that the limited
compulsory license clause, if attacked and fought vigorously, will bo removed from
the bill. Therefore, I believe we must approach the publishers in a co-operative
spirit. Certainly, we cannot afford to comply with the clause regulating the terms
of payment, and we must have consideration on the question of returned records, etc.
The bill as it now stands is certainly very unbusinesslike snd would prove very un¬
satisfactory to all concerned. We are studying the situation over here as diligently
as our opportunity will permit and I believe, as you have doubtless found, that there
are many angles and many possibilities to be considered.
I trust you will understand my semi-legal language. I would be pleased to
hear from you as to your opinion along Buch lines as I have written to you about or
you may be disposed to disclose to me.
Certainly it is time for the talking machine men to pull together, but we
muet, if we upproach the Columbia Co., make very sure that an understanding is reached
whereby we will not suffer through lack of complete co-operation. I have had some
experiences lately that impress the importance of this matter upon me. .
received.
MAR 181909
FRANK L. DYER,
5
X-fr
March 17, 1909.
Mr. Thomas A. Edison,
Port Myers, Pla.
Dear Mr. Edison:
In reference to the Hew York suit, 1 have notlilgg
to add to ny letter of yesterday; hut, now that the first shock
has passed over, I cannot help hut feel that the situation is not
so hopeless as it looked at first. Perhaps hy this time you have
received a copy of the opinion, hut if not you will certainly get
it from Mr. Buckingham's office very shortly. It is evident that
the Court of Appeals made no attempt to pass upon the intrinsic
merits of the case', they simply soy that, having the injunction
before them the question is whether or not the injunction was
violated. The injunction enjoins us "from directly or indireotly
selling or leasing within the State of Hew York, phonographs and
supplies therefore, to others than complainant and from using,
Within the State of Hew York, phonographs and supplies therefor,
and from causing to he sold or causing to he leased or causing
to he used, within the State of Hew York, phonographs and supplies
therefor, hy others than oomplainant, and from selling for use or
licensing for use, within the State of Hew York, phonographs and
suppll es therefor, hy otherB than complainant in violation of the
provisions of and of the rights of the complainant under certain
2. 3/17/0^,mmoo HqAflDOMOMq jamoitam T* A* ^s0»*
contracts as extended, 'bearing date October 12, 1888, between the
North American Phonograph Company and the Metropolitan Phonograph
Company and also be tween Thomas A. 'Edison, the Edison Phonograph
Company, the Edison Phonograph Works , The North American Phono¬
graph Company and Jesse H. lippincott, and a contract bearing date
the 6th day of February, 1889, between the North American Phono¬
graph Co. and Join P. Haines, and a contract bearing date July
1, 1893, between complainant and the North American Phonograph
Company."
looking at the injunction as above worded and at nothing
else, the Court of Appeals say that it is broad enough to prohibit
all sales of phonographs and supplies, whether made under patents
or not, and they therefore reach the conclusion that, while Judge
Hazel was justified in holding us in contempt, his reasons for
doing so v/ ere erroneous and too narrow. Now as a matter of fact,
when the injunction was first presented to Judge Hazel by the
New York Company it wa3 the same as quoted above, exoopt that it
did not include the words "in violation of the provisions of and
the rights of the complainant under certain contracts, etc." In
other words, Judge Hazel refused to grant an injunction which
applied to all phonographs, but directed that it should be modi¬
fied so as to include only such phonographs or supplies as were
covered by the contracts, and, as you know, he interpreted those
contracts practically as patent licenses. The Court of Appeals,
however, say that they cannot pass upon the scope of the injunc¬
tion as it exists and cannot take into account anything that
transpired before Judge Hazel at the time of the settlement of
the order, and, looking at the injunction apart from everything
else, they hold that the words "in violation of, cto." added by
T. A. 15(118011,
3. 3/17/09.
VMASMOO HSAROOMOHR JAMOITAW
Judge Hazel at Mr. Buckingham’s suggestion, are merely words of
description and are not words of limitation. The Court of
Appeals, however, say that if the injunction is wrong or that a
mi at alee has been made, it cannot bo corrected on the contempt pro-
oeedings. This, it seems to me, is a direct invitation for us to
GO to Judge Hazel and have the injunction modified no as to carry
out the ideas he has so often expressed in his decisions. In
view of the flagrant injustice which has been done us by the
Court of Appeals in misinterpreting the effect of his decisions,
I do not 3ee why in all decency he should not be only too glad to
have the matter set right. I will urge this view very strongly
on Mr. Buckingham .
He just telephones me that nothing new has transpired to-day,
except that he 3ias seen Mr. Tomlinson and his partner, Mr. Tompkins,
and that they are both still anxious to have the negotiations
['.one ahead with. I am to meet Hr. Buckingham tomorrow morning,
and if necessary will write you from his office. At that time
I will take up with him the question of the advisability of
getting word to- all of our jobbers in Hew York State so that they
may be able to get in orders for phonographs for delivery before
the 2 6 tli inst., at which time the Court of Appeals hartd3 dw/n its
mandate. As I have before ivritten you, we have already taken the
precaution to ship them .al} records possible, so that some of the
May list have already been shipped.
If a petition to Judge Ilasel is filed for a modification of
the injunction, it should, in uy opinion, be presented by Judge
Hatch, who is a neighbor of Judge Hazel1 s and to whom the latter
would at least show respectful consideration. Judge Hatch is at
present in Oklahoma, but is expected back on Saturday. Mr.
° ^ ^^/MAIMOa HSAflOOMOHS JAMOlTAW T. A. EdiSOn.
Melville Church is also very fertile in suggestions regarding
Federal practice, but he is to-day in Hew Orleans. I have tele-
graphed him and have just received word that he will be here
on Monday morning.
Yours very truly,
March 19,
1909.
Hr. Thoms A. Edison,
Eort Hirers, Fla.
Dear Mr. Edison:
In reference to the Hew York case, I spent all
day yesterday In town consulting with Hr. Buckingham and Judge
Wallace. I saw them separately, so as to get their individual
views Uninfluenced by the opinion of each other. They both
believe that, while Judge Hazel might concent to a modification of
the injunction, it would be practically a hopeless proposition to
go to him to have that done, in view of the decision of the Court
of Appeals. They also regard an application for re-argument
before the Court of Appeals as hopeless, because. they both say
that the Court of Appeals is undoubtedly most unfavorably disposed
to us, and that we can expect no concessions from them. Judge
Wallace expressed himself rather more forcibly than I would care
to put in writing. The thing to be done, in their opinion, is to
apply to the Supreme Court for a review of the case, but the
chances of the Court taking up the case by certiorari arc very
unfavorable. Hr. Hicks succeeded last year in getting the
Supreme Court to take up the two Victor suits in this way, but it
was only because the Supreme Court regarded the questions involved
as of great public Interest. It would be our idea to show that
in the present oase Wd'°<!Jtife&tlW}i^vte±<S0<J!£VMdqual , if not greater,
public interest. If a petition for certiorari is filed with the
2. 3/l9/09. Thomas A. Edison.
Supreme Court, Hr. Buckingham seems to feel that the injunction
will he further stayed. The effect of presentinc the petition
to the Supreme Court would he to hold up the case pending nego¬
tiations for settlement.
Both Mr. Buckingham and Judge Wallace are strongly of the
opinion that we should settle the case, and I Believe this can
still he done, although, of course, at a higher figure than they
were formerly ready to accept. Hr. Tomlinson saw Hr. Buckingham
yesterday and told him that he could effect a settlement for
$500,000.00, hut this, of course, is their first figure and no
doubt can he reduced. I told him that the amount was entirely
out of the question; that we have probably not made that much
money in Hew York State in all the time tint we have been doing
business there; that we could not pay so much, and that if they
insisted on any unreasonable demands we -would simply have to get
out of the State. 1 suggested that we had other lines of business
to follow and that the phonograph business was poor anyway, so that
with these ideas in mind I believe he will be able to luring Tomlinson
down to some reasonable figure. Possibly, when the matter oomoB
to a head, it might be well for me to see you personally and lay
tlio whole proposition before you, but I will not do so unless it
is necessary and until the matter is definitely settled one way
or the other.
Yours very truly,
COWbVMA
C A I
..March 26th, 1909.
Mr. Frank L. Dyer, President,
National Phonograph Co.,
Orange, N. J.
' H/A* - ,
l»r r
iU' • MAR 27 1909
1 V FRANK L. DY'R.
to Mr oonversati°“ ycur °m°* y08t«-day. I have tried to convey
to Mr. Child as fully as is possible our conclusions on the talent question. Of
course, there are likely to be misunderstandings in oral negotiations; in auch
cases, I would suggest that Mr. Miller appeal to you immediately, and I have in¬
structed Mr. Child to appeal to me immediately.
In the Be Wolff Hopper matter: I think the Victor Co. cun waive all
question of exclusive rights to "Casey at the Bat" in favor of a new arrangement
whereby Mr. Hopper may make the record for the National Co., if the said new ar¬
rangement can be made in such a manner that Mr. Hopper will make the record over
tor us. We reel that we could handle a few other records by Hopper and, if it so
happened that the list we select would suit you, or if an arrangement could be
entered into whereby he would sing half a dozen records for us and half a dozen
for you, we could probably secure his services exclusively to our joint interests
for a reasonable figure.
1 regard the matter of requiring the artists to remake records occasion¬
ally as important. For instance, the .Victor Co. is continuously making improve¬
ments in recording and we expect to for a long time to come. We have no doubt
that you also expect to make improvements. Therefore, an arrangement with an
artist for exclusive rights to a certain selection is apt to become valueless
from the improvement in the art unless the said artist will agree, for a certain
consideration, to remake the record at certain intervals; it should be about
once a year.
I do not believe that either one of us can lay down positive linos to
guide Messrs. Child and Miller in their arrangements. I think, however, that they
can reach an understanding between themselves well within the understanding as be¬
tween our respective companies which will work out satisfactorily.
. „ th® question of securing grand opera talent: I explained your idea
to Mr. Child and he agrees with me that there is nothing in your plan of securing
a °5 exclusive talent that conflicts with our interests, and Mr. Child express-
ed himself as willing to help Mr. Miller in any way he could to secure a substan¬
tial list exclusively. Mr. Child has been at this sort of thing for a number of
years and understands the personalities and relations of a good many people, their
connections with other companies, otc.
co.-folio 2 - F.L.D. - 3/26/09.
We feel that it is good policy for us to help you, who are confining
yourselves exclusively to cylinder goods, as it takes the services of such artists
away from others who are competing with us in the disk line. I have no doubt at
all that, if you desire to secure a substantial list of celebrated grand opera
singers, you can got them, and, as I have said above, we are willing to help you
as much as wo can or as much as you desire our help.
As to the arrangement between Ur. Miller and Mr. Child to prevent com¬
petition for the same artistes We are willing and anxious to enter into some .
understanding whereby this will not occur. Of courso, the value of such an
understanding rests very largely between Mr. Child and Mr. Miller. It will be of
little value unless there is honest, hearty co-operation between these two gentle¬
men, or whoever has the matter of securing artists for your Company in hand. I 1
know Mr. Child will act fairly and liberally so long as he feels that he is getting
the same kind of treatment. I believe that Mr. Child and Mr. Miller can arrange
this matter satisfactorily.
Yours very truly,
President.
NATIONAL PHONO GRAF*# CD
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National Phonograpl
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’ Re f err irte^t &\my n
T RECEIV—
f APR 3 1909
\L FRANK L. »Y£R,
' Referring^ &&\my meeting w-i-th the jobbers at
Columbus on Sunday last, would strate that they held a morning session
at which I was not present, hut I was invited to take part in the
afternoon session. The principal matter of complaint which they
had to take up with the National Phonograph Company was the subject
of Babson Bros, advertising, which from their point of view, was
very objectionable. They had quite a mass of correspondence they
had received from dealers in all sections of the country complain¬
ing about the advertisements in question, and in addition to this,
they had a great many copies of the advertisements whi ch had been
issued by Babson Bros. These were all called to my attention, and
they wanted to know what our company proposed doing in regard to it.
X assured them that the matter was under advisement, and that in-
all probability it would be adjusted very shortly, to their entire
satisfaction. I am quite certain you will receive an official letter
from the Association regarding the matter.
X took up with them in detail the proposed plan for a
Continuous Exchange, and it met with the unanimous approval of those
present, particularly after I had called their attention to the fact
that we intended changing the wording of one of the paragraphs,
which would. make it compulsory for the dealer to send us an order
for a quantity of records equal to the number he was returning to
the factory, which we would in turn send to the jobber through whom
the exchange was to he consummated, just as soon as we could render
proper credit for records returned. They were all so we 11 pleased
with the proposition that they intended writing at once to the Victor
Company, suggesting that they also institute an exchange along the
same lines. I, however, insisted that they permit the matter to
rest until such time as we could issue our letter to the Trade on
the subject, when they might take the matter up if they saw fit.
They have agreed with withhold their letter to the Victor Company
until we can complete arrangements covering our exchange.
They are all very desirous of having our Company produce
a machine which will compete with the "Victrola" , hut it was the
consensus of opinion that they would not he very successful in market
ing such a machine, unless they had some high-priced records to go
with it; meaning, of course, Grand Opera Records, which must
necessarily he made hy high. class talent. It was further suggested
that such a machine should have some very conspicuous points of
difference from any machines we are now manufacturing; they mention¬
ed specially that it should have a Reproducer entirely different
from any we are now using, particularly a larger one, even though
it did not produce any better results. This is one of the matters
I will draw to Mr. Weber's attention.
I saw several of the "Victrola" machines, and I must ad¬
mit that the lines of the Victrola Cabinet are far superior to any
we have so far seen in the models presented to us, and I am enclos¬
ing herewith, a photograph which shows one of these machines quite
plainly. These machines are equipped with an excellent hall hearing
caster, which permits them to he moved very readily, although they
and quite heavy.
The jobbers as a whole appear to he very enthusiastic
over the Amberol Record Proposition, and I find that in most cases
their advance orders for the Amberol Records are almost equal, if
not quite as large as those they are sending us for the Standard
type. The question arose as to where we obtained the word "Amberol"
and I explained to them that it was a word coined hy Mr. Edison.
They were of the unanimous opinion that it was a very happy thought,
and that out advertising was bringing same to the attention of the .
public in a way which would certainly produce results.
The question of a Clearing House for surplus records was
very fully discussed, and they all appeared to think that the prop¬
osition as now being. carried out by Mr. Ornsteinof the Victor Co.,
would prove of great benefit to all jobbers, but I explained to
them that we had no intention whatever of attempting to inaugurate
a scheme of this sort, as we felt that the jobbers themselves should
handle the proposition; it was then practically decided that they
would endeavor to establish a Clearing House for surplus stocks,
which would either be handled by their present Secretary, Mr. P.' B.
Whit sit , or by some one of their members, the jobbers to be charged
their pro rata share for the maintenance. of such a department. Mr.
W. E. Henry at once handed Mr. Vhitsit a check for $100. so as to
start the proposition. The method of handling this matter is to
be decided upon at some future date.
Before the Meeting adjourned, I invited them all to take
dinner with me at the Southern Hotel that evening,- ’which they did,
and we had a very pleasant session lasting until about nine o'clock,
when some of them were compelled to leave in order to catch their
trains. Some of them left the city that night. I remained in
Columbus until Monday evening, as did some of the jobbers. This
afforded me an opportunity of discussing business conditions with
them generally. I left for Detroit Monday night, arriving there
Tuesday morning.
C-eo. E, Mickel of the Hebraska Cycle Co., Omaha, Neb.,
was present, and in conversation with him I found that he is now
selling about three Edison machines to one Victor. This, of course
taking into consideration his entire business; but, in Omaha his *
retail sales on the two lines, is about even.
Max Strassburg of Grinnell Bros. , informed me that he had
seen a recent advertisement of the Peoples Outfitting Co., Detroit
who were selling an Edison Sev/ing Machine. I have requested Mr. ’
Strassburg to endeavor to locate one of these advertisements for¬
warding same to me at this office, so that it may be drawn to your
attention.
®be P, B. Whitsit Co., Columbus, advise that they are pay¬
ing the Victor Company about one-half the amount they are paying us
for their monthly purchases, and that about 80& of the Victor Co's,
goods are disposed of at retail.
The Whit sit Company have very few Edison machines on hand,
and they will be compelled to place immediate shipping orders for
same in the near future. This is also true of Grinnell ,ros. ,
Detroit , and I believe I am safe in saying that the entire jobbing
•crade have at present very few Edison machines in stock. If, there¬
fore, businass does revive, we ought to receive some nice orders
for machines, in the near future.
, _ . . ®ri”?e?-1 Bros. « Detroit, have one of the finest buildings
in Detroit, which is devoted entirely to pianos and musical merchan¬
dise. Their basement is goven over to their talking machine depart¬
ment, and it appears that our line is receiving excellent represen¬
tation-equal in every respect to that given the other lines.
The American Phonograph Co., Detroit, will remove from
their present location on May 1st to a store directly opposite
Grinnell Bros, This is due to the fact that their landlord demanded
an increase in rent from $2750. to $6500. , and they have secured
their new location for $3800. per year on a three year lease. They
have about 100 Edison machines now in stock; consequently, we cannot
expect any immediate shipping orders from them for machines.
I next visited the Eclipse Musical Co., Cleveland, where
business is only fair. Mr. Towel of that company advised me that
o! pl5?0d an order for approximately 75 Edison phonographs,
as he had practically run out of machines.
I visited several of the large dealers in Cleveland, none
of whom appeared to be doing any great amount of business.
vh n it W T. neXo stop- was at Pittsburg. I found that the Standard
Talking Machine Company were still endeavoring to lessen their
°f merchandise on hand, which they had secured through pur¬
chasing the stock of the several jobbers which they recently took
°°?oer? appear to be progressive, and are making an
earnest effort to obtain the dealers' business throughout their
territory by travelling four salesmen, in addition to v/hich Mr.
Roush himself makes short trips each month*
While in Pittsburg I had an interview with Mr. Eischer.
Manager of 'Che Talking Machine Department of the C. C. Mellor Co.
also their Mr. Soren who is their financial man. The subject of
their becoming Edison jobbers was again brought up, but you will
assurance that 7“ Sfr& the Stfndfrd talking Machine Company our
^ £ the Present at least, we would leave them undis-
&££ srs?
practically all CoKflfS , “ ,v
fls^Er'in^v" ?»^°5)r^,?osbw ssfi.1;’
Soe4»?“tSSf.“5l^aEt°Eff3t3n%l£*^2°?";T®*n^
ESIi3r“~^
best nonJ^ti 'business conditions do not appear to he of thfe
*.^2iiWMsisas ag-srs-^-sjt..
Yours very truly
NEW YORK, «. Y . .AB.C».....8*...19Q9». .
National Phonograph Co.,
Orange, N. J.
Gentlemen:-
X beg to confirm my agreement with your president, Mr. Prank
I. Iyer, to accept $30,000, to be paid by ycur Company in three notes for
$10,000 each, payable respectively three, six and nincmonths from date
of settlement hereinafter referred to, in full satisfaction of my claim
for professional services in the enforcement of the claims and demands
of the New York and other Phonograph Companies represented by James L,
Andem. In addition, I will upon such settlement give to your Company
a release acknowledging satisfaction of my claim for said compensation,
and I will also release the New York Phonograph Company and Mr. Andem
from all claims therefor upon receiving, if requested, releases/from Mr.
Andem, the New York Company and Mr. Pahnestock to me. I have informed
Messrs. Tomlinson, Tompkins & Tomlinson, solicitors for the New York
Phonograph Company and Mr. Andem, that I have agreed with yeu so to do,
leaving it entirely optional with the New York Phonograph Company and Mr.
Andem to pay me any additional sum, so that settlement can be made and
the releases obtained from me upon the basis stated, whether the New York
Phonagrqph Company or Mr. Andem pay or dc not pay to mi_any additional
Very truly yours,
sum.
Y MAH MOO HHAflOOMOH-S JAMOrfAM
PAn-t. —
ih jamoitAm
"n
Sunday, April 4,1909
Ur. Thomas A. 'Edison,
Fort i'yers, Ela.
Dear Mr. Edison:
Since the handing down of Judge iToyes1 opinion X
have he on working almost constantly on tho Mew York case from all
points of view. It has been a time of intense .anxiety because it
is the greatest responsibility that I havo ever been called upon
to take. X have, however, finally and definitely made up r.iy
mind that under all the circumstances a settlement of the case is
the only safe course to take. The fact of the matter ca not he
disguised that Judge Noyes’ decision was a .knockout. hlov/ under
the belt. Judge Wallace told no very plainly that the Court at
the outset had determined to heat us, and Judge Hatch says that
the controlling cause of all the unfavorable decisions, including
the last, has been the apparent equities in favor of the defendants.
The mariner in which the situation was handled immediately prior
to and during the formation of the National Phonograph Co. under
the advice of Judge Hayes was almost oriminally insane, and no
matter what arguments were put forth by us we could never overcome
the effect of this handicap. A number of these considerations
which ooour to me were the following:
1. When the affairs of the North American Phonograph Co.
were wound up by the Receiver, all the local contracts were pur-
2. 4/4/09. . . . T. A. 'Edison.
' ' Y HAS MOO HSAHOOklOHS JAMOITAM
chased by Ott. These were not assets, but were liabilities of a
most dang rous character. The Bill of Sale to Ott provides:
'bind the said party of the second part (Ott) hereby agrees to per¬
form the several stipulations, covenants and agreements made by
the Horth American Phonograph Co. in and by the said contracts."
V/e were able to avoid the saddling of these covenants on you only
because the Hew York Co. did not clearly prove the exact relations
of Ott, but Judge Jenks of the Hew York Appellate Division told
Judge Hatch that if this fact had been established the Appellate
Division would never have rendered the decision it did. Upon
a retrial of the Davega suit or the trial of any other case against
a. jobber or dealer in Hew York the true situation would undoubt-
edly come out, especially If they succeeded in obtaining an open
Commission to take your' testimony.
2. When the federal suit was first brought, instead of
meeting the issue squarely, a demurrer was filed, the effect of
which was to admit the truth of the allegations of the bill but to
deny the legal right of the Hew York Co. to redress . Following
the failure in this direction, a pica was filed alleging that the
actual complainant was the Columbia Phonograph Co., but the proof
obtained in support of the plea fell so flat that no testimony in
reply was ever taken arid the pica was promptly denied. Thereupon
another plea was filed, asserting that Andem'a contract was
champertous, but this also failed dismally. All of these actions
were so apparently frivolous as to seriously prejudioe us, because
they were clearly made for purposes of delay.
3. We v/ere also prejudiced by the advice given you by Judge
Hayes, and also to I£r. Gilmore, to avoid the service of process,
and, as you remember, Mr. Gilmore was actually brought up for
oontempt of court and fined. The exact relations between you
1
and the National Co. were also seriously questioned.
4. Immediately after the National Co/ was formed a number
of suits were brought against the Columbia Co. in Hew Norland the
Hew York Phonograph Co. was .joined with the national Co. as a
oo- complainant, upon the theory that the New York Co. was a licens
for that territory. All of these and other things gave to the
case an apparent taint, which no amount of argument could ever
overcome, and all the .fudges who ever heard the case have seized
upon this aspect of it. We were very fortunate indeed in having
Judge Hazel adopt our contention, that the Hew York Company’s
rj.gn.ts were limited to patents, and I have no doubt they were; but
Judge Hazel reached the conclusion that the rights of the Hew
York Co. had boon invaded, and the way in which he handled the
expanding procoaa patent shows upon what thin ice wo were skating.
Vfiion gj:s case got into the hands of Judge Noyes he was undoubt¬
edly influenced by the apparent equities in the defendant's favor.
Ouuge Noyes is just such a nan an Judge Nandi n, who originally
tried the Standard Oil case. He 13 an appointee of President
Roosevelt and has many of Roosevelt's ideas. Ho apparently tries
to get at what ho regards as the inherent right of a case a3
distinguished from a mare legal right, and his action in this suit
shows how dangerous these ideas are when put into effect by a man
of power and authority.
Those were the considerations that were put to me by all
the lawyers, including Mr. Buckingham, Judge V/allace and Judge
Hatch, as being the cause of the present situation. The question
then was, could anything be done to stem the tide and divert it
into the ohannel followed by Judge Hazel and if so, what would be
the probable chances of success. The following courses were
^ HSAROOnOHA JAMOITAH ^ • A. EuiSOn.
op n to us:
Eirat: To apply for a rehearing, and this application was
actually made and is now pending. The chance of its being
granted would be very remote, and if granted the chance of the
Court reversing itself would be against us. As a matter of faot,
when the application for a rehearing was filed with Judge Ifoyes
by Mr. Church, the former suggested that perhaps the Court had
made a mistake in morely affirming Judge Hazel, whereas perhaps
they should have modified his decree by striking out all reference
to patents and affirming him in that form. If tiiat should bo
done, the situation would be actually worse than now, because at
the present time all that Judge Ifoyes says on the subject of the
contracts is nothing more than an oapreseian of the opinion of the
Court, whereas, to mike tho change ha suggested would bo to actu¬
ally embody that opinion in a judgment.
Second: Apply to the Supreme Court for' a. writ of certiorari.
This seemed to be only a last resort, because the chances of its
being granted were more than ten to one against us, and the cost
of printing alone would be upwards of §5,000,00. Judge Wallace
advised me that he saw no hope in this course, because tho Supreme
Court only took up questions by certiorari that involved grave
constitutional points or were of great public interest; and he
told me that he had been informed by one of the Justioe3 of tho
Supreme Court that unless a case came within this definition
they would not take it up even if convinced that a gross miscar¬
riage od justice was sought to be corrected.
Third: We might go ahead as before, eliminating such patents
as Judge Hazel fined us for using, -which would mean leaving out
the styluses until next Dotoherrand putting out reoords made by
5. 4/4/09,.. . .. ... ... , , . T. A. Edison.
YttAIMOO V(%»fKTOVIOW«l JftHiOlrXVl
the vacuum extraction process. We would then be brought up for
Contempt the second time, and, oven if the Court followed Judge
Hazel, it might hold that the vacuum extraction process did not
avoid the patent. Everybody, however, seemed to feel that there
would be slight hope of the Court taking a narrow view of the case,
since the Court would be much more likely to follow the opinion
of the Circuit Court of Appeals; therefore, there seemed to be but
little hope in this direction.
fourth: V/e might tell the Hew York Phonograph Co. to go
ahead and do the business and if it was found that they did not do
it to then serve notice on them that the contracts were cancelled.
Such a' course would mean that their first stop would be to hnrrass
the jobbers and dealers to either get them out of the business or
aloe exact x’oyalties from than. ltather than pay anything more
I think the jobbers and dealers would inevitably go over to the
Victor camp or trike on the Columbia and Indestructible goods.
I did not see anything hopeful in this course, because it would
moan a cognation of business in Hew York for at least a year, even
if anything favorable should ultimately come of it.
In other words, I went over every contingency that was
presented and tried to figure out a way by which the situation
might be improved, but. it seemed more and more hopeless. More
than this, with the opinion that Judge Hayes has handed down, the
other looal suits would no doubt become aotive, with the danger of
preliminary injunctions being granted in the rest of the affected
territory.
Tomlinson’s offer was in the form of two letters of Mar oh
27th, one to Buckingham and the other to the national Phonograph
Co., copies of which are enclosed, and this offer expired on
6. 4/4/09. T. A. 'Edition .
YMA1MOO HSAflOOMOHS JAMOITAH
April 2nd. It v/as necessary to either accept the offer or take
the chance of something happening to make it smaller, hut with the
strong probability that if nothing favorable occurred or a further
setback took place, or if they had an inkling in any way of the
extent of the business, the money demanded would be greater. I
saw no other course than to accept Tomlinson's offer, under your
authority, which v/as done in a letter signed by Judge Hatch as of
Counsel dated April 2nd, copy of which I enclose. Before accept¬
ing the offer I had Judge Hatch and Hr. Buckingham each write me
a letter recommending a se ■ tlement, and I enclose both of those
letters. You will note that Hr. Buckingham's letter was written
the day he advised me of Tomlinson's offer, and he says: "I
should accept the proposed settlement if the business were nine
and it were say money that, were to be paid for it.” Having ac¬
cepted Tomlinson's offer, .31 then determined that we must have some
sort of a contract that would keep them from changing their mind
but which would not necessarily bind us, and on Saturday afternoon
these contracts were executed, and copies are enclosed. The
longer contract provides for the settlement of everything except
the Hyman suits for §405,000, providing the papers are acceptable
to Judge Hatch. Shis provision will enable us to back out if we'
wish to but at the same time will prevent them from doing so,
because whatever papers they present to us must at least bear the
evidence of good faith. I think substantially all the points are
covered by the oontract , but the fifth paragraph provides that
they will execute$Hany and all other papers that may be reasonalily
necessary to carry out the purposes of this settlement.” The
shorter contract provides for the settlement of the Hyman suits
for the consideration of $20,000, consents to the discontinuance
of these suits being given us by the Hew York Co, This you will
^ • i/i/09 ^ma<,MOo hrahoouohr JAHOITAH T. A. "Edison. v
note is a slight variation from Tomlinson's original plan as
accepted by Judge Hatch. Tomlinson originallt proponed that we
sh/mld pay them $425,000 and except the Hyman suits absolutely,
leaving us to take care of those suits and to try to dispose of
them because of Hyman’s champortous agreement, which is quoted in
full in the contract. If we failed to prove the olitunpertouu
nature of this contract, Hyman would go a'ead with the Davsga
suit now pending before the Court of Appeals at Albany. I am
told that the Davcga appeal was irregularly taken and can be dis¬
posed of as a natter of course. Thin would make it necessary
for Hyman to go ahead with one of the other suits, and the ques¬
tion would then be presented whether the Trial Court would follow
the Appellate Division, holding t .ha t tho suits involved a federal
question, or would follow the TJ. S. Circuit Court of Appeals , in
which Judge iloyes practically decides t’:at the questions after all
are contract questions. It seems to be generally believed that
the State Trial Court would follow the Appellate Division, and on
appeal again to the Appellate Division it would be reasonable to
expect that they would still adhere to their former opinion, so that
a final review of the questions would be probably deferred until
a second appeal to the Court of Appeals at Albany had been taken,
which would take three or four This course, however, was
not absolutely and completely certain, and therefore we thought it
might be better to have the Hew York St!. the State Court
suits. Under the Hew York law this can be done even though sin
attorney has a contract providing for a contingent fee, and in
the absence of fraud the attorney is limited in his recovery to
his proportion of the settlement. It 3eemed to me that a settle¬
ment at $20,000 could not possibly be questioned as fraudulent,
because, as the State Court cases now stand, they are admittedly
® * 4/ 4/09 . ' V A 15,04 „ 0n
dead, in view of the deoision of the Appellate Division, and a
settlement could not reasonably take into consideration the
possible contingency that the Court of Appeals might eventually
reverse the decision of the Appellate Division. Tomlinson was
willing to make this concession, hut hr insisted that if the
New York Co. should attempt to settle the cases by consenting to
their discontinuance v/c should give the New York Co. an agreement
to indemnify them against any claim that Hyman might have for
professional services. I saw no serious objection to this,
because vie will simply be indemnifying ourselves, since, when the
settlement i3 completed, wc will have control of the New York Co.;
but the matter will bo laid before .Tudge Hatch when he returns on
Tuosuay, so that wo maybe sure to have his approval. It is
interesting in this connection to note that Tomlinson, for all his
ahrev/cuiess, failed to see that the carrying out of the contraot
:Cos the ^ettlem\j«t;-?d,efrfcS«r-:Sta±e suits should be made contingent
upon t.-ie carrying out of the contract for the rest of the litiga¬
tion, and an interesting question v/ould be presented if we
accepted the $20,000 contract and did not accept the $405,000 con¬
tract. I do not think, however, that any substantial and perma.-
nent advantage could be gained by that course, with the probabil- .
ity that in the end we would find ourselves in a worse position
than now.
Finally, the contracts executed yesterday include a letter
from ,‘.Tr. Andem to me, in which he agrees to consent to the set¬
tlement and to release any interest he might have in the State
suits.
The settlement when made will, I believe, be a substantially
oomplete and effective settlement of all of these litigations;
certainly we will never hear from Andem again. The interests of
the other local companies are settled, under Andem' s contracts
with them giving him authority to do so, and the original con¬
tracts will "bo attached to the settlement. Enough will he paid
Andem to enable him to oomply with the conditions of his contracts,
except, as I have already advised you, in the case of Kentucky
and Kansas, where the contracts provide that the cases must not he
settled without the consent of the local company. Andem tcllo
me that these local companies are all defunct and that great
difficulty was experienced in getting together enough of the
original members to author! sx his contracts, so that he will onl3>-
have to deal with s, few men, and he expects to settle with the:, on
some sort of a compromise. X think he told me th: truth, hut if
not, wo would certainly have ;ui apparently good defense to any
further actions, no that if further suits wore ever brought by
the other local companies the effectiveness of unat defense would
have to he first determined before the suits even started. This
would take a number of years, and when the suits did start they
would be confronted by the question of laches; by the difficulty
of proving title, by their failure to protest against the invasion
of their territory; by the lack of a. confirmation agreement and
by numerous other considerations that distinguish all the other
suits from the Hoyt York and ilew England suits. X feel absolutely
convinced tint no one will bo found who would be willing to spend
the money to carry on such suits in the face of the difficulties
which will bo presented. Of course, there were other local
companies that are not included in the settlement, but with them
Andem had no contracts. These companies included Pennsylvania,
Colorado, Utah, Wyoming, California, Montana, South Dakota,
Georgia, Florida, louisina and other States, hut they have all
"been dead for :aany years, and If the defense of laches ever ap¬
plied it would apply to them. Consequently, I regard the set¬
tlement as being conclusive, with the single exception of the
Hyman suits, and as to these X think our position ia so strong
that if Hyman can over recover anything it will "be limited to
§10,000.
I have tried to tell you just what ray ideas have boon and
v,-hy I had reached my present views. If we do not make a set¬
tle ant we have the certainty before us of on accounting, the
cost of which, as I have explained, might bo $100,000, and the
recovery in which might bo a large amount. The cost of an ac¬
counting can therefore be deducted as a certain expense, and to
fight out the other litigations might involve as much eost. To
get rid of these litigations removed a black cloud that has hung
over the business for years and makes it possible to reorganise
the business under one corporate name with you as the real, and
acknowledged head. hr. Wes tee tells me that in this way probably
§100,000 yearly can be saved, nnd the adverticing advantage would
be great .
7/e have arranged with the bank to pay off the §120,000 loan
at the rate of §15,000 par month, 30 that talcing into account the
§150,000 already accumulated the matter v/ill bo closed up in
twenty months. In this connection I should say that I have Hr.
Hicks' written promise to give us a release of any claims that he
might have for 430,000, payable In three non-interest bearing .
notes for $10,000. each for three, six and nine months.
Unless I hear from you to the contrary I v/ill therefore go
i
ahead with all the papers as above outlined and will close up the
matter probably by nestt Thursday evening, and certainly by Kriday.
I hope you will not objeot to my doing so, because, having spent
11 4/ 4/09 . T.A. Edison.
Y HAS MOO HSAROOHOHS JAMOITAH
more than two solid weolcs in thinking ov-.-r the situation, I am
convinced that, distasteful as the settlement 1b, it is the "beat
thine to do.
fours Tory truly,
y
i
MEMORANDUM
P^Ke-CA . — -
Mr. W. H, Miller: 5/12/09.
It was agreed to-day at a conference tie tween Mr. Tjlclison
and the Hxecutive Committee and also Mr. Aylsworth and Hr. Aiken,
that we should go ahead right away with the hornless machine
for taking the Standard and Ambcrol records; and at the same time
push forward as rapidly as possible the machine for taking the
standard size record and also the record of large diameter.
Regarding the large record, therefore, arrange to proceed with the
making of a preliminary list of 25 masters, submitting to me at
as early a date as possible such an arrangement as your people may
decide will make an attractive list. By this I mean, the number
of orchestral, band, instrumental and vocal piecos that you would
have in a list of 25 p^jj|%ons. These selections are to be ell
high-class , and if possible should contain some of the best-known
pieces of the masters, such as Bsethcven, Bach, Handel, Wagner
and others.
In the meantime we are going right ahead building spinning
machines for making the large records as soon as the masters are
turned over to us .
Bet me urge upon you the importance of going right ahead
with this work without delay.
BBD/lW I>. b. D.
/l kti. <ij njcr^
1
Hew York City .
June 15 th,. 1900V'
' R
jUi, i •; ]!)osj
FRANK l. i)YcR, J
Mr. Thomas A. Edison,
Edison Laboratory ,
Orange, N. J.
My dear Mr. Edisons-
The National Association of Talking Machine Jobbers
will hold their second annual convention at Atlantic City, July
Sth, 7th and 8th. The closing event of the convention will be
a banquet on the evening of July 8th, to be held at one of the
leading hotels.
Most of the Edison jobbers are members of the Associa¬
tion and the greater port! on will be present at the convention.
The As so cia ti o n
sent at the above banquet ... _
tance will be appreciated by all.
x tends to you an invitation to be pre-
their gueBt of honor and your ac cep-
last year we made the same request, but unfortunately
y°“£n engagements during that time made it impossible for you to
„ . "i11 not be necessary for you to address the jobbers,
if you desire to be a silent participant, but we want you with us
far what could make a gathering of phonograph men more complete
than the presence of the "Father of the industry"?
From ray recent conversation with you in the factory I
know you have great faith in the future of the phonograph busi¬
ness and this is the kind of people we want at Atlantic City.
. . . ?°?Vt y°u kin<ny ^ve th-is ye**1, “08 1 careful consider¬
ation and let .me have your acceptance if at all possible.
An early reply will be greatly appreciated.
Kindly address me at
97 Chambers St. ,
Hew York City.
Chairman/ Commit toe o£\ Arrangements*
June If!, 1909.
Mr, J. Newcomb Blackman, ^
97 Chambers st.,
New York City ,
My dear Mr. Blackman:
Since writing you to-day accepting your kind
Invitation to attend the Banquet of the National Association of
Talking Machine Jobbers, I have seen Mr. TSdioon with reforenoo to
your invitation to him and have persuaded him to make an exception
to hie usual rule and accept, and I am glad to tell you that ho
will also be present at the Banquet, You understand, of coupes,
that he absolutely refuses to make a public address, bo that 1
will count on your respecting hia wishes in this matter,
Yours .'very truly,
HH/I m
Johnson that your work in the copyright natter will end on
July 1st. Before that date I think it is due Mr. Johnson that
you should prepare a detailed report addressed to him and to me
telling exactly what you have done, what publishers you have
visited, what arrangements have been made with them, how they
view the copyright situation generally and what concessions, if
any, they are willing to make.
[ENCLOSURE]
NATIONAL PHONOGRAPH COMPANY
June 2S, 1C09,
Ur, U. R. Johnson, President,
Victor Talking Machine Co.,
Coxndon, jt,*j.
i.ty dear 2ir. Johnson;
Yours of the 2 3rd inst. has been received,
and an you leave the matter to me I will arrange to discontinue
Vr. Goodwin on 'July 1st.
I think, however , that there should os an understanding between
us on one point. JJr, Coociwin lias. 3een practically all of the music
publishers, and almost without exception they have agreed to our
,ise °i’ anything they any copyright after July 1st, Some of them
have consented to modifications from the striot letter of the law,
such, for example, of allowing a rebate of 10^ to cover returned
records, and collect royalties only on records sold, regardless
of the number manufactured. It is evident to me that we must
show the publishers that the market for their publications is mnii
and that in a certain sense we are independent of them. Of
course, there will inevitably be mary copyright "that v/e will have
to use, but I think that we should use as few of them as possible.
Wien the publishers realise that there is not so micih money in
this proposition as they think, v/e may be able to smoko fairer
and more satisfactory terms with them, This result can be
reached, however, only by the two companies standing together
[ENCLOSURE]
a. 6/as/09fftmoNAL PHONOOR APH OOMPANY R ♦ tTOhtt £1 011 •
and agreeing among ourselves as to what copyright publications
we intend to U3e, leaving it for Mr, miler and Mr, Childs to
decide what publications they want and both companies putting them
out at substantially the same time. By using the same copyright
selections wo obviously will employ a fewer number than, if p/e
worked independently and you toot some and_we others. l,et mo
inovf whether you think ouch an arrangement as I propose would meet
with your approval.
Yours very truly, ,
SKD/rWff
President..
0'
Gomptungr
My dear Mr. Dyer:-
Your letter of June 25th, concerning
•Goodwin and the copyright situation, received:
I was not under the impression that any great
amount of co-operation was further necessary between the
Companies on the copyright question. If there had been
anything like a war developed of course co-operation
would have been necessary; so far as I can see, however,
the Companies seem to be disposed to act most eminently
fair, and the thought I had in mind in approaching them
was, after finding a selection that we desired published
approach the publisher with a contract in which the man¬
ufacturing clauses are waived and in which the settle¬
ments for the publication are to be made quarterly based
on sales at such terms that rebates, returns, etc., would
be taken care of automatically. We have come to no de¬
cision on this point as yet, but it is my opinion that,
with the exception of a few of the more successful pub¬
lishing houses, we will be able to make terms which are
very satisfactory to us regardless of the terms imposed
by the law.
It is very evident that there is a decided ad¬
vantage to the publisher in the matter of selling cheap
music to have the selections listed in the talking machine
catalogues. It is also evident that the talking machine
people can list but comparatively few unless they choose
to lose money by increasing their recording expenses, ouV
of all proportion to their sales. Therefore it will nat-
S’. L. D.
6/28/09.
urally follow after this point is fully demonstrated that
the publishers will seek to have their matter published by
some talking machine company or all. When that time ar¬
rives we will certainly be able to make satisfactory ar¬
rangements .
The thing that 1 feared most was that the publish¬
ers would form some sort of a combination whereby they could
hold us up acting in concert. As they do not seem disposed
to do this I think we had better be very careful what sort
of combinations we make. I do not believe we are in a posi¬
tion to wave the red flag; we certainly are in a position to
adjust our businesses to the best possible point of satisfac¬
tion under the existing conditions. I do not believe it
would impair the strength of our position at all to concede
at first to every demand within the law that the publishers
may make. The business cannot be regulated by the law and
it will not be regulated by the law. We must know exactly
what we want to do before we decide to act; therefore, it is
my opinion, as we are not fully informed as to what the nat¬
ural outcome of the change of conditions will be, that we
had "better start in on the standpoint as prescribed by the
law, with the exception of the modification of the manufac¬
turing and settlement clauses.
The great danger we had to face was a combination
withholding the rights from us. I do not regard such a
combination would have been practical or lasting, but tem¬
porarily it might have worked great damage and caused us
untold anxiety and confusion. Of course any movement on
our part whereby we in combination should undertake to force
some radical bargain down the throats of the publishers
would certainly have the effect of throwing them together
and might even now create a condition whereby we could not
secure the rights.
As I have explained above, I do not think further
co-operation is necessary; I think we can secure the modifi¬
cations which are necessary and satisfactory to both of us
by working on independent lines, although there would prob¬
ably be great benefit in keeping in touch with each other.
Vie have done nothing as yet and would be pleased to hear
from you on the above subject before we approach the pub¬
lishers independently.
Certainly if we do decide to co-operate with each
other and approach the publishers directly we must approach
them in a friendly spirit and not attempt to hammer down
their royalties or anything of that sort at first. If we
require lower royalties, as of course we will, the publish¬
ers are more likely to be successful in hammering them down
themselves a little later than we would be in hammering them
now. This is one of the times when it pays to wait; one of
the occasions; I think, when you win by waiting.
Yours verytruly,
__ _ _ _ _ __________ President.
June 29, 1909.
Mr. Byer:
Calkins & Holden and I have spent considerable time in
discussing advertising plans for the season of 1909-10. We
have, by no means, gone over all of the details necessary to
the different kinds of advertising, for these cannot be
completed much before September. By details, I mean the selection
of papers, position, illustrations, copy and similar features.
We have decided to recommend the expenditures given below and
will want/ your approval of them before you go abroad.
I appreciate that for the first three or four months
of the time covered by these expenditures, it will not be easy
to meet the bills of approximately $25,000 per month. I believe,
however, that this advertising is the most important feature
of our business and that we ought to do the advertising here
referred to even though we had to finance it in some special way.
We have deoided to recommend the following expenditures:
Monthly Magazines and Weekly Publications $125,000
Newspapers - - - - - -- -- — _____ i4o)oOO
National Earm Papers 10,000
Canada Advertising - - -- — - _ 12, 000
Bulletin Boards ------------- - - 13,000
~"#298J,00C
This total will be $300,000 when the Incidental expenses
of illustrations, electros, etc., have been made.
In magazine advertising, we want to make two full pages
the unit of space, using this space in regular size magazines and
an equivalent amount in weeklies like Saturday Evening Post,
Collier 1 s ,and also in monthly magazines of larger size. £he
attached list shows how we would like to use the best publications
in this class. This list provides for an expenditure of
approximately $120,000. $5,000 will be spent in a limited way
among from six to ten other publications.
We want to make two pages the unit in the coming season for
the reason that it seems necessary to have that space to tell
our story, and the continued use of two-page copy puts the
manufacturer in the biggest advertising class. We have prepared
this list with the idea of impressing the country with the bigness
of our proposition and for the purpose of itB effect upon the
trade. We are planning a newspaper campaign, to supplement the
magazine advertising ,in upwards of 300 cities of 10,000 and more
population.
We have planned to make a 10,000 line contract with the
newspapers and make a schedule covering a period of eifht months,
beginning with the first Monday in October and ending with the
last part of May, 1910'. Our present plan is to run three
advertisements a week. The first three weeks of each month we will
run two 3" advertisements and one 12" advertisement. During the
last week of each month, v/e will increase the size of the large
advertisement from 12 11 to 30 11 , using the increased space for a
better stoiy about new Records.
advertisements will be used to show a single sentence
referring to one or another of the artists or combinations making
Records for us.
4.1. advertisement will be devoted to Phonograph copy and
the 30 advertisement will be a combined Phonograph and Record
advertisement. We hope to get special position for all of these
advertisements so that even the 3" space will be read by a large
proportion of the newspaper- reading public.
We will limit our farm paper advertising to from three to five
publications having national circulation of the same kind as the
Saturday Evening Post.- V/e will use these for general publicity
just as we do the Post. We have decided that the best use of a
large list of farm papers calls for the use of copy that will
interfere with the Babson advertising. Consequently, we have
decided to practically leave the farm paper field to the Babsons,
together with the mail order publications they have been using.
It seems wise to continue to advertise in Canada and we
cannot accomplish much for a less sum than $12,000, which was the
amount spent in the season just closing.
The $13,000 spent for railroad bulletins is already contracted
for and cannot be changed.
The foregoing takes no account whatever of the advertising
expenditure being made through the Babsons which will cost us
from $15,000 to $25,000 next year according to the volume of their
Before you sail for Europe, I hdpe to be hble to Bhow you
proofs of the kinds of newspaper advertisements we intend using.
I will be glad to di3(
any time you may name.
j the details of this memorandum at
L. C. McChesn ey.
t
JUL.AWU9
FRANK L. DYcR.
July 1, 1909.
Mr. p, 1. Dyer:
I return herewith Mr. Johnson's letter in which he states he
does not think any oo-operation is necessary. Speaking now for our
own Company, perhaps independent aotion will he better, for as we make
three or four to one of Beoords, we will always have the advantage as
to terms. The publishers will soon learn that ours is the desirable
catalogue, and they will be making us the favorable proposition.
As I remember your letter to Mr. Johnson, you wanted him to
co-operate for a time at least, in making a very limited use of new
copyrighted matter. Mr, Johnson seems to be afraid of this, but he is
shrewd enough in the last two lines of his letter to advise you to wait,
and let him do sb he thinkB best. If he won’t enter into an agreement
to let the labratorieB inform eaoh other of what they intend to do, and
follow out your scheme to only use suoh new matter as appears to be very
likely to be desirable, then you will gain nothing and will probably not
feel disposed to impair the progressive oharaoter of your catalogue.
. . . ^ * have had with Mr. Johns on, I think it would
be hard to hold him baok with the mutual arrangement you suggested.
He claims in his letter to be afraid, but X suspect the reason is he
does not want to be bound by any oompaot that will hamper his ambition
to appear progressive. It waB not your proposition to "force any rad¬
ical bargain down the throats of the publisher s'1 when you decided to
start in with new stuff, but rather not to use too much of it in the
?? TLf£y-M0Sth?i» SWs you might make olear to Mr. Johnson again, and
• if he will "wait" in this way, it is all you have asked.
[FROM DELOS HOLDEN]
At your request, I havo examined the cabinet or
"hornless machine" which was in the Committee Room. At present
there is no horn in this machine, but I understand that it is
proposed to use a sectional horn, the sections being united by
the horizontal partition which supports the phonograph, the bell
portion of the large section being secured to the front wall of
the cabinet in registry with the opening therein, the small
sootion to be hinged to the partition so »3 to be movable in a
vertical plane.
As regards the design of the cabinet, its lines are
very similar to those covered by certain of tho design patents
of tho Victor Company. While there is some difference in the
bottom lines, the lines of the sides and top are practically
identical. I refer particularly to tho use of the large front
corner posts having ornamental carving & the uoe of a cover which
is practically exactly the shape of the Victor cover, although
it lacks some of the ornamentation thereof/ I do not think that
the doing away with this ornamentation is sufficient to avoid
the design patents, because the shape of the oabinot and cover
is a matter of design, and see no reason why the design patent
should not cover these novel shapeB as well as the mere orna¬
mentation which would not roqiire so high an order of invention,
X -think it will be necessary to do away with the en¬
larged oarved corner posts, and change the shape of the cover.
The whole appearance of tho cabinet would be altered, and would
as to make
produce a new design, if the corners were cut off
an ootagonal arrangement shown in this sketch. Have you ever
considered the desirability of such a shape? You will observe
that such a cabinet occupies very much less space in a room
when it is set diagonally into tho corner of a room, and which
is a position quite coim|only occupied by instruments of this
character as well as musio cabinets. It would certainly seem
to be a good;: talking point in selling the machine, so that in
addition to avoiding the design patents, it would aid our sales¬
men and those of our dealers, and of course we need all the
talking points that we can get, as the Victrola machine is a
difficult proposition to compete with commercially.
As regards Miller reissue patent Ho. 12,963, the
structure infringes about two-thirds of the claims of this
patent, and I think it will be necessary to radically modify
the internal; features of the cabinet. I am aware that the mot
courts do not look with favor upon the idea of a patentee re¬
issuing his patent so as to broaden the Bane to oover devioes
which have been put out in the interval between the granting of
the patent and the granting of the reissue, but I do not see
how such a defence could be raise*, in the present case because,
we did not put out any' ‘cabinetimachlnel:havihgvan;,encrosedfi
horn in this Interval, and while some of the broadened olaimB
probably cover our slot machines, the said claims are merely
invalidated by these machines beoauso they were put out long
before either; the reissue or the original patent, and were in
public raise more than two years prior to the original filing
date. But this slot machine has little hearing on the ques¬
tion of invention in enclosing the horn within the cabinet.
To shov/ this idea we shall have to rely upon dolls and other
devices containing phonographs, and upon British Patent ITo,
16,897 of 1900.
I think that the safest plan is to make a cabinet
having only one compartment, mounting everything in that, this
being old, as for instance, see patent ITo. 470,477 which shows
a phonograph having operating' mechanism, ouch ac a motor and a
stationary tapering sound amplifier, all within one compart¬
ment. I submit a sketch showing ay idea of a structure upon
which v/e could make the strongest defence to a suit on the
Miller patent. This structure does not avoid all of the claims
but it avoids almost all of them, and I think that v/e Bhould
stani a very good chance of winning a suit on the Hiller patent
based on such a structure as this on the grounds that there
would be no invention in curving the horn c of Criswell, so as
to bring it around, underneath the motor, such change having no
acoustic effect, but being merely done to make a smaller cabi¬
net and utilize space that would otherwise be wasted. In this
structure the bed-plate of the phonograph rests upon and is
secured by scr ews to four brackets, and there is only one com¬
partment, although false work may he laid upon the brackets
to cover or oonoeal the horn, and prevent tho dropping of small
objects into the bottom of the compartment. This false work
should be readily removable, so that we would have no difficulty
3.
In convincing the court that that there is only a single com¬
partment , and that this false work does not constitute a par¬
tition within the moaning of the patent. She horn 3hotild he
fixed and should not he sectional, and should have no movable
part. She stylus should he movable out of engagement with the
record by a device for lifting the floating weight. This
would not be greatly different from that of the structure of
the Criswell patent which lifts the stylus lever (See Figure
1) by a rod o£.
You should also consider the desirability of using |
inst ead - Of . - a -fixed Si©?®, a horn oscillating on an axis concen¬
tric with the bell of the horn, as suggested by Hr, Lewis .
Such a structure would avoid some of the claims of the Hiller
patent that would be infringed by a fixed horn construction,
but, on the other hand, the fixed horn avoids a good many claimB
that would be infringed by Mr. Lewis's scheme, so that it 3eema.
to be a stand off, and you should adopt whichever form you
consider preferable from a commercial standpoint.
My principal reason for believing that it is necessary
to use a single compartment cabinet is that there are a large
number of strong claims on a two compartment arrangement, name¬
ly: claims 13, 21, 23, 26, 27, 29, 30, 35, 38, 47, 95 and 105.
These claims are all limited to the two compartments being
acoustically separate, and it might oven be held that the false
work suggested by me would divide the cabinet into two compart¬
ments within the moaning of those claims. If so, we Bhould
4.
have to do away with the false work, hut that would he the only
change necessary. We would certainly have a much stronger
case in fighting these claims if we had removahle pieces of
open work rather than a solid hoard partition as in the pres¬
ent structure. These appear to he strong claims, and I think
they should he avoided as much as possible.
There is another set of claims in which there are two
compartments which are acoustically separate, one compartment
for the reproducer and the other for the large part of the
horn. These claims oould easily he avoided hy the use of 'ty
communicating compartments. 1 refer to claims 16, 35, 39, 40,
41, 4-. , 56 , 58 , 59 , 60 , 65 , 67 , 72 , 74 , 82 , 94, and 107.
There are several claims which can ho avoided hy not
fitting the mouth of the horn to the opening in the oahinet,
namely: claims 25 , 29 , 33 and 45. It scorns to me tha't in view
of these claims 'the horn should not he so fitted, and while it
is true .that one of the doll patents showB a cylindrical tube
fitted to afe. opening in the head, this is not a tapered member
such as an ordinary amplifier, and furthermore the claims are
drawn to comh.inations of which this is merely one element, and'
this is generally true of the claims of this patent, and is one
of the things which makes it bo dangerous.
.Thfe following claims sould seem to make it imperative
to dispense with the swinging sound oonveyer, and use a one-
piece horn extending clear to the sound box of the reproducer,
narely: 26, 28, 43, 48, 49, 50, 51, 52, 53, 54, 55 and 107.
'■/ 5.
The following olaims mako it neoesDary to Bake the
horn in one piece as distinguished fron a sectional horn,
namely! 37, 93, 94 and 95.
The following olaims are avoided hy using a station¬
ary reproducer, namely: 75, 76, 77, 78, 79, 80, 81, 83 and 84.
The following claims are avoided hy having the motor
and horn in the same compartment, as distinguished from having
the motor boxed in, namely: 67, 90, 91, 96, 97, 98 and 99.
While it is old to "box in a motor, yet these are combination
olaims not dependent for their novelty on the boxing in of the
motor, and should therefore be avoided by the simple expedient
of leaving the motor open as in the Criswell patent.
The following olaims might bo sued upon but 1 am
Satisfied that they are too broad and would be held invalid in
view of our public use of slot maohineB, namely: 34, 36, 44,
45, 68, 69, 70, 71, 73, 85, 89 ani 92.
The following claims are limited to the use of a
deflector or sound modifier applied to the baok end of the
horn, which feature we do not propose to use, namely: 1, 2, 3,
4, 5, 6, 7, 9, 10, 11, 12, 14, IB, 17, 18, 19, 20, 22, 46, 57,
«!', 62, 63, 64, 66, 100, 101, 102, 103 and 104,
Claim 8 Ib apeoifio to the yoke and horn for uniting
the pivotal tone arm to the stationary horn, arxl we do not in¬
fringe it.
OlaimB 31, 32 and 42 are limited to a cabinet open
at the bottom. This feature we do not use.
6.
The following olaima I do not see any Hay to avoid,
and think wo shall have to stand suit on these and defend on
tho ground of non-invention, namely: 24, 86, 87, 88 and 106.
These claims read as follows:
"24. A talking machine comprising a casing provided
with an opening and having a hinged cover, a partiion
adjacent tho cover, talking machine operating moanB sup¬
ported beneath the partition, a talking machine including
a sound reproducer, said reproducer being above tho par¬
tition and accessible by moving the cover, and a horn ex¬
tending from the reproducer to the opening in tho cabinet.
86. In a talking machine, tho combination with sound
reproducing means, of an amplifier cooperatively connected
therewith, aid an inclosure below the talking machine with¬
in which is positioned the major portion of the amplifier.
87. In a talking machine, the combination with sound
reproducing means, of a cooperating amplifier connected
therewith, and on inclosure supporting tho major portion
of the amplifier below the talking machine.
08. In a talking machine, the combination with sound
reproducing means, of a cooperating amplifier connected
therewith, and an inclosuro supporting the major portion
of the amplifier in a fixed position bolow the talking
machine .
106. In a talking machine, a casing having an opening,
sound amplifying means ctationarily mounted within said
casing and inclosed thereby, the largo end of said amplify¬
ing moons terminating at about said opening in the caBing,
a sound conveying tube within said casing and having one
end connected with the small end of said amplifying means,
sound reproducing means at the o ther end of said sound con¬
veying tube, and a record support within said casing.
If you see any nay of avoiding them by a structure
in which the horn is carried below the phonograph, as is neo-
essary in order to mate a desirable instrument, I should be
glad to have your views, but as I have previously stated, I
do not consider that the uoe of a horn of this character in the
Criswell patent , would amount to invont ion.
DH/tol,
LEGAL DEPAROMENT:
d-o-y^ a
July 2, 1909.
Note attached copy of letter to Walter H. Miller in
reference to the new Copyright Law. I imagine that nothing of
this sort will come up before 1 return in September, but if it
does, ascertain from Washington whether the composition was copy¬
righted after July l, 1909, and whether the composer is an American
citizen or a citizen of a country granting corresponding rigits.
If a copyright is one requiring royalties, refer the matter to
•Mr. Goodwin and have Mm negotiate with the publisher to get the
right to use the piece, preferably for an upset price, the reason¬
ableness of which Mr. Wilson can determine, and if not, try if
possible to have the royalties only apply to records sold, and not
to all records manufactured, and also, if possible, only to rdcords
sold in the United States, and finally providing that 10$ of the
accrued royalties should be retained for one year and an adjustment
then made, in view of any returned records. Mr. Goodwin is fully
acquainted with this situation and will be able to negotiate the
matter, but I would prefer to have notMng done until I return.
ild/iww
E. L. D,
[ENCLOSURE]
Mr. Walter H. Hiller,
Manager Recording Department,
ITew Yorlc,
Dear Sir:
July 8, 1909.
The now Copyright law went into effect on July i, 1909,
and in the future you want to be guided by the following instruc¬
tions:
Any piece of music marked "Copyrighted 1908" or earlier can
De freely uoed. Any piece of music marked "Copyrighted 1909" can
Do freely used, provided you are ahsolutoly sure that it was pub¬
lished before July 1, 1909. If you have may doUbt as to whether
the copyright was obtained before or after JUly i, 1909, bring the
matter first to the legal Department, in ordor that the date of
the copyright can be ascertained. If the music is a foreign pub¬
lication and has no copyright notice on it, do not use it until
it has been first submitted to the legal Department, because there
may be an American edition. If the pieoe of music is of American
production and contains no copyright notice, do not use it until
the -matter has been brought to the attention of the legal Depart¬
ment, because you may have a spurious copy. if you have any
reason to believe that the composer of a copyrighted piece is a
foreigner, bring the matter to the attention of the legal Depart¬
ment, in order that the nationality of the co^osor can bo
[ENCLOSURE]
5/2/09.
w. H. Miller .
investigated, -because it is possible he may not be entitled to
mechanical rights. In other wordB, hereafter, unless you are
absolutely convinced that a piece of music has been copyrighted
before July 1, 1909, you want to use extreme care, because the
penalties for infringement under the new law are very severe.
VSy general idea on the subject of what you should do is not to
hamper or hinder you, but I think you should bear in mind that the
payment of royalties will operate as a heavy additional expense
which we may not bo able to get back. Make as much use as you
can of uncopyrighted pieces or old pieces, and if any composers
come to you with songs, give them a trial, as it might pay ub to
W a good thing outright and copyright it ourselves. If, how¬
ever, you $ind it necessary to use any copyrighted piecs which may
have been copyrighted after July 1, 1909, consult with the legal
Department,, in order that proper notice to the copyright proprietor
may be served on him and a special contract made if possible. I
imagine that no particular piece of music copyrighted after
July 1, 1909, will become so popular that you will have to use it
before I return in September, but if there is anything that you
have to use, you want to be
very careful not to make any mistake.
Yours very truly.
eld/iw
President.
MINUTES OE MEETING OE SAMS MANAGERS
HEED TOLY 12, 1909.
Present: Messrs. Dolbeer, Goodwin, John Pelzer, Burnham,
Hudson and Durand.
Mr. Dolbeer stated that this meeting was oalled for the purpose
of conferring upon the matter of haying the salesmen of the National
Phonograph Company represent and introduce as far as possible the
goods; of i the various Edison Companies manufactured here; that we
have eighteen salesmen at the present time and propose increasing
the number to thirty; that the estimated oost of ; the thirty men per
year will be approximately #90,000 to $96,000; and that while these
men will travel prinoiply for the National Company, who will of ooursi
Btand the major portion of the expense, a certain proportion of the
expense will be apportioned to the other companies according to
the amount of work done or time expended in their interest at the
end of eaoh six months or year. He stated that Mr. Goodwin had been
appointed Manager of Salesmen, exoept those who are now employed
in a special oapaoity by the Battery Department, Kinetograph Depart¬
ment or Business Phonograph Department, no salesmen being employed
in the Bates Department at present, and that any matters to be taken
up with the salesmen should be taken up through Mr. Goodwin. He slad
that this idea he thought was suggested by Mr. Dyer and that Mr. Ed in
had urged its being adopted. Mr. Goodwin then said that the Sales
Managers should outline what is to be done by the salesmen, What
you want them to say, what you want them to show, what class of people
they are to oali upon, the training they must be given before they
start out, etc.
Hr. Hudson brought up the Question of expense, stating that
ho proposed putting on a oouple of additional salesmen and did not
want the expense to he so great that he could not put. these men on ‘I-trr <*'*"
i 'rt-iA.If o-w/5m> -^/ ZJL~i> , f, i
Hr. Dolbeer xsts stated that this oould only he determined at'tho
end of six months or a year and would depend on the servioes rendered,
the national Phonograph Company of course standing the major portion.
Mr. Burnha brought up the question of expense, having only a
small line to handle, and thought this might antagonize the dealers
hndling numbering machines, but it was explained that it was not the
purpose to take the orders and fill them direct from the factory,
but to have the dealers and Jobbers get the benefit of the work done
by the salesmen the same as in the case of the national Company. * It
was agreed hy all that this would be a good plan and bound to be of
benefit.
Mr. Durand suggested that in issuing instructions to the
salesmen it might be well to have a form of receipt at the bottom
of the sheet whioh the salesman would sign and return, thus making
sure that they would receive notice of any changes:; eto.
Correspondence with the salesmen, reports from them, eto., will
be carried on between the sales Manager and the salesmen with extra
copies of reports and correspondence to be filed with Mr. Qoodwin
for referenoe.
Mr. Durand asked whether his salesmen sbuld foward anyoomplaints
or other information they might aquire regarding the amusement
phonographs, and it was thought this would be of benefit.
Mr. Dolbeer said he thought it would be of considerable benefit
for all the Sales Managers to meet and disouss ways and means for
their mutual benefit— if not at regular intervals, then to meet on
call, say every two weeks, a month or six weeks.
Mr. Dolbeer was eleoted Chairman of the organization, and for
(<3>
the present at least the meetings will be subjeot to call.
In disoussing points of mutual benefit and help Hr. Durand asked
whether it was the idea that a new phonograph, for inBtanoe, just
prior to being adopted in its f inishd'state be brought before them
for their oritioism, and it waB agreed that this might be done.
Hr. Goodwin pointed out that forms to be gotten out by the SaleB
Managers for the use of salesmen should be of the same size as the
salesmen aro now using so as to fit the reoeptaole.
It was arranged that a meeting Should be held in the Committee
Boom on the third floor to-morrow morning for the purpose of explan irg
the way of handling the Kinetoscope and films, eto.
There being no further business the meeting adjourned.
t. W. Talker.
Sept. IX, 1909.
I have read over Mr. Graf's letter about Vi- <j
Grand Opera talent- with a great deal of interest and
return it herewith.
I must confess that there is no feature of
the business upon which I have a less definite
opinion than that of Grand opera Records. If
we were practically alone in the field the
problem would be easy of solution. The
competition of the Victor Company, however, makes
it exceedingly difficult. They have a great
advantage in their recording possibilities,
their louder record and their exclusive artists,
most of whom at present occupy the highest places
in the Grand opera world. Therefore, no matter how
well we may plan, we must suffer by comparison.
It seems to me that the -action of the Victor
Company in selling Slezak Records at $1.00 each
has practically laid down a policy that we must
follow. It seems impossible to think of our
getting a higher price than $1.00 each for Slezak
Records and since Slezak is the best of our
possible artists at the present time, I do not sec
how we can expect to get a higher price for other
singers' Records than those made by Slezak.
Consequently, it looks as if we were- practically
compelled to make a flat price of $1.00 each- on
Grand opera Records, regardless of their cost.
After all, the question is one of not' how much
money we can make from this feature of the business,
but how little we shall lose. Even at’ the price
paid Slezak for his work, we ought to get back the
entire cost in from one to two years. In other
words, the profits from his Records above the cost
of manufacturing 'and selling ought to be enough in •
from one to two years to offset: the sums paid Slezak.
The same ought to be true of any other singer, even
though we paid a considerably higher price.
I do not think that the Victor Company is going
to be able to indefinitely- maintain its present
prices of from $2.00 to $7.00 per Record. Just aB
soon as we or any other company can produce Records
nearly equal to theirs in quality and can sell tham
at a more popular price, their exclusive contracts
are going to be a boomerang. They will be
compelled to sell Records at a lower price, even
though they lose money on every Record. It is possible
that if we named a flat price of $1.00 for all
of our Grand Opera Records, it would soon begin to
Mr. Dyer -2- Sept. 11, 1909.
react against the Victor Company and they would
sooner or later have cause to regret their
efforts to discredit Slezak- and our own efforts to
enter the Grand Opera field.
The only complication in a popular price
like this is the effect upon singers. We might
have some difficulty in getting artists to sing
for us if the Victor Company sold their Records
at $3.00 and we at $1.00. if the present Victor
prices are also obtained by the Gramophone Company
in Great Britain and Europe, and both companies are
likely to be able to continue to make exclusive
contracts with the best artists and to maintain
the existing prices, then it would be a mistake on
our part to have a flat price of $1.00 each.
Then, again, so long as we have only a cylinder
record, must we not admit inferiority and if so, a
$1,00 price would be consistent with our position.
In any event, I hardly see how we- can have a graduated
scale ranging from $1.00 to $3.00. The Victor
price of Slezak Records seems to settle the matter
conclusively.
As for the lingers named in Mr. Graf’s letter,
Jorn, Kraus, Knote and- even de Reszke cannot be
put in the first class. Torn has made Records
for us in Germany and we are selling them here-
at 35# each. The same is true of Ernest Kraus.
Knote spade some Grand Opera Records for us but
they made no special hit and certainly we could not
get more for his Records than asked for Slezak Records.
Bonci is probably the best name suggested and
probably equal or superior to Slezak from a
commercial standpoint. I think he is an Italian
tenor and would afford a better cosirparl son with
Caruso. Whether it would pay to fight the E'onotypia-
contract for him would depend upon the probable cost.
I doubt if we could afford to spend a total of more
than from $20,000 to $25,000 to get his services.
I would not think of putting singers like
Muratore, Berti and Resky in the Grand opera list at
all^I do not know Mile. Verlet, but the cost of
her. seems too cheap to be good. The Records of
de Reszke would be useful as part of a catalogue,
but I- doubt if he would have great advertising
value. I am under the impression that he is here
regarded as a "has been" and no matter how good his
Records might actually be, he would be discredited by
possible buyers.
The greatest demand in this country seems to be
Mr. Dyer -3-
Sept. XI, 1909.
for Grand Opera Records in Italian. I do not know
whether this is because Italian opera is more popular,
or because caruso's Records have been so widely sold
as to make it appear as if they -represented the
sentiment of that part of the public wanting high-class
music. Our own experience has been that Records in
Gentian, especially those f rom V/agner * s operas, have
not sold as well as those sung in Italian.
not 311 eaBy matter to attempt to influence '
Metropolitan papers for the puppose of exploiting
Slezak before the public. Slezak will succeed or fail
according to his merits. If he is not a high-class
singer, no amount of effort on anyone* s part could
gain for him favorable consideration at the hands of
4? press, if he succeeds, on his merits, it
yiH not he necessary for us to do anything. There
is nothing, however, to prevent us from getting out
attractive printed matter and in that way keeping him
before the public. We might also use newspaper space
to exploit him and his Records just as Mr. Lawson does
to exploit his stock operations, we would have to use
display space, but we could address .the public in the
space in the same words as if the matter appeared in
reading columns.' This will be expensive publicity
and it might pay.
diMr. Grafs letter points out, however, that we
cannot expect to get in a few months what it has
taken eight years for the Gramophone and Victor
Companies to secure.
L. C. McChesney,
[ENCLOSURE]
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HOTEL MAjESTIC a 1 . . .
"i",““,l“f," Xwax->l^cji.. •> Mv** A* ^ao-c. tjmv- «
C. JxJKA-t. i-44-M.
^-<_-A-v\^ ^Xa^T-^tX/Laa^aa^. <*X> pfct aaaaJ"'(>-^ felf-o- ^2-M-p,
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[ENCLOSURE]
7{apies& Co., j££t
(2,5 - k - - WHOLESALE AND RETAIL - » - r 3 ^ )
(Sdlson w nog rap As and ^Records,
*dlncl all Supplies.
>-/Vo. 603 (bast >. ALaitt Street.
Mr. Walter' Miller!
Nov/ York C it;
Dear. Sir
Richmond, Va„.
^ECCiv^
'S&zzmtf
d?CK L Or-:/L
Enclosed please find some clippings from the latest Vic¬
tor publication; . They say they have secured the services of the cele¬
brated tenor Slezak, also Ricardo Martin. We thought you were going
to spring these fellows with the new hornless machine, but you cannot
get ahead of these babies for talent. .
. - — There-is another -matter, we '.would like to . call* to your at¬
tention, wish you would take’ it up 'when selecting records, when a pop¬
ular song comes out like "My Wife* s Gone .To The Country Hooray." that'
you could put it out before the song is dead, this record does not go
on sale until the 25t,h. of thin month. Why donH you have a special
list to put out on these records, send them out so tho public can got
them at once. According to your system now you cannot get a popular
song out within GO days, this is not justice to a dealer that loads up
on them. If we could countermand our order for one-half of our pur¬
chase we would like to do no.- Take this up with every ... dealer 'and they
will appreciat.-.,- your efforts... ...
Diet. C.B.H.
Yours very truly, -r
C. B.: Haynes & Co. ,
[PHOTOCOPY]
. Sept. . <25,1909.
Messrs. C.B.
Gentlemen :-
Haynes & Company,
6C3 East Main Street,
Richmond, Va.
>. Yours of the 20th inst. to Ur. Walter H.
Miller has been brought to my' attention. We have made
an exclusive contract with the celebrated tenor, Leo
Slezak," who in the .future will sing only for ub. The
records referred to v/ere made by the Graphophone Company
in Eondon some time ago, and no doubt this particular
announcement wuo made in view of the fact that we have
just made a contract with Slezak. So far as Ricardo Mar¬
tin is concerned, we have a number of hio reoords, which
will shortly be issued with the now concealed hoin ma¬
chines, for which we have selected the name "Amberola".
What you say in regard to getting out popu-
_ar songs in advanoc of our regular time is a matter
which 1 have often recognized should be done, if possible,
and I expect very shortly to have a scheme worked out by
which records of this kind can be issued v a*y promptly.
[PHOTOCOPY]
if L'easrs. C.B. Haynes & Co.
You will receive an Official notification explaining
the detailB of the arrangement in'a'few doyB.
Yours very truly,
fuj/ark.
President,
(?**.¥* 9)
Mossra. Dyer, Wilson, Aikon and Wurth:
Some time ago Mr. Edison present¬
ed Mr. Walter Kruesi with a phonograph, and at the same time
promised to make some speoiul moulded records of material ho would
send us, which gives instructions to the general public on hygienic
matters.
I am Bending Mr. Wurth one of the two masters we have made
for him and seme is to bo wade into a regular mould and I will
advise later as to how many moulded recordB are to be made from
same. Mr. Wurth will note that the master iB recorded on a 98 2/3
threads blank, and it will not bo necessary to make a mother mould.
W. H. Miller.
10-26-09,
Wxzmpt JFirjmtim*
CHARLES E. McCRAITH, -
WILLIAM T. FREY, - ' - .
CHAS. J. HAMBERGER,
tty* Qlitg xx£
39-41 CENTRE STREET
ORGANIZED, DECBMBBR, 1857
Newark,
RECEIVES^
NOV:; 11903 .)
FRANK L. DYER. )
—MEETINGS-: — - -■
,LAST FRIDAY MONTHLY
.19
o. H' '7-
l—l
we take in appeal-
Hon. Thomas A. Edison
hoar Sir;-
Please excuse the liberty], if
ing to you for the donation of a phonograph for the Firemens 1 home
in this city. Our building is now completed and many of our members
worked for you in the factory on- Ward street. As some of our
members are crippled from injuries received in doing Fire duty and
unable to move about, the music of the phonograph would help to
while av/ay many hours that otherwise would hang heavy on them.
We have a widows and orphans fund but cannot use any of it for the
purchase of a phonograph, but would purchase the records at our
°wn expense. ~ '
Thanking you in advance, we remain,
Yours very respectfully,
ASSOCIATION OF EXEMPT FIREMEN.
Firemens' Hall, :
39 & 41 Centre at.,
Newark, N. J,
The Trade, and such others as have followed the development of
the Talking Machine business since the advent of the "Victor" or
"Gramophone", will know that the following statements are true without
further proof.
We strongly urge those who are in doubt upon the question, or
who do not know us well enough to take our word in the matter, or
who contemplate handling hornless machines of other makes, to secure
the services of competent Patent Attorneys and obtain advice on the
situation, for, by them, the situation can be readily understood and
much unnecessary trouble and litigation avoided by their clients.
About the year 1895, the United States Gramophone Company
started, in a small way, to manufacture "Gramophones", The "Gramophone",
as everyone well understands, was radically different from a "Grapho-
phone" or "Phonograph",
The manufacture and sale of the "Gramophone" was first con¬
ducted by the United States Gramophone Company, followed by the Berliner
Gramophone Company, and then by the Victor Talking Machine Company,
which latter company acquired its rights from the former companies.
We now control the original Berliner basic patents, and we
have the "Gramophone" developed to its present condition. Through our
efforts and improvements the "Gramophone" has become an important factor
in the market, in spite of the general opinion among Talking Machine
manufacturers, at the time of its advent, that it was destined to
remain nothing more than a toy.
We chose to invade the field of no one, but have created an
entirely new line of Talking Machines and Records, with new and
distinctive features.
Our line of Disk Talking Machines has not interfered with the
business of those manufacturers who have attended to their own business
properly. There always has been room for the two types (the disk or
gramophone type and the cylinder or phonograph and graphophone type) and
there always will be.
After we had made a success of the machine and records, the
American Graphophone Company and the Columbia Phonograph Company-General
put out a machine and record of the "Gramophone" type, which was sub¬
stantially a copy of our product and a radical departure from anything
they had previously marketed.
These latter companies had no license at that time under our
basic Berliner patent covering Talking Machines of the "Gramophone"
type, nor did they ever own such patent. Their claim, which appears
from time to time in their advertisements, of having originated the
"Disk” will be found upon investigation, to be based upon quite a dif¬
ferent thing from the Disks they are advertising in those same
advertisements.
They went into the Gramophone business after they saw that we
had developed a substantial business therein, totally in violation of
our legal rights involved. We met this infringement and unfair competi¬
tion very successfully: then the American Graphophone Company took a
license', which it now has, under our basic Berliner "Gramophone" patent.
About the year 1902, the Victor Company had developed a new and
important feature in the "Tone Arm". It is history that our "Tone Arm"
marked a great advance in the Talking Machine business. Our organization.
invented, developed and introduced it - it was ours.
The American Graphophone Company, following its previous policy
commenced manufacturing it after its commercial value was demonstrated.’
The difficulties and complications that arose at that time,
through their attitude in the above matters, were adjusted to the best
business understanding possible under the circumstances. A certain
exchange of license agreements under certain conditions was entered into.
In the above matters, the Victor Company made sacrifices, as a contribu¬
tion to the cause of peace in the trade.
And now comes - as was to be expected - the latest attack upon
another of our important creations, - "The VICTROLA" - on account of which
we are obliged to force the American Graphophone Company and the Columbia
Phonograph Company - General to again enter the legal arena with us, and
in which we believe to exist little doubt of our prompt and decisive
" T 7
3
. Our inventors worked long and carefully on the complicated
questions involved in the "Victrola" long before this important advance
in the art was realized by others. We believe we have, through our own
patents, thoroughly protected this new art against the infringements
which we felt, from previous experiences, would come when its value was
realized; and, what is also important, we have developed the skill gen¬
erally in our Laboratories to these specific purposes, and, were it only
a matter of superior manufacture we have placed ourselves years ahead of
competition in the art.
Something of the rare skill, workmanship and patience that the
great Violin makers must master enter into the construction of this new
line - the "VICTROLA".
The "Victrolas" have a peculiar refinement and quality that
cannot be imitated save by the same methods and construction due to years
of experience and patient skill which created them. . "Victrolas" and
"Victrola" quality are not easily within the grasp of ordinary manufac-
turers on short notice.
We feel absolutely sure that our organization possesses a
superior ability v/hich cannot be unceremoniously appropriated, and the
time is past when any concern or concerns can infringe our patents with
impunity.
The "Victrola", for the higher class of instruments, has proven
its commercial worth and its great improvement from an artistic stand¬
point ; it reproduces the higher class of music in a far more satisfac¬
tory manner than any other instrument heretofore devised; it has a form
and character of its own, which we believe to be our exclusive property,
by right of discovery and invention. The United States Patent Office
has granted us rights which are more than likely to be sustained.
As with our previous inventions, the American Graphophone
Company, upon seeing its value, has put out an enclosed horn machine
embodying the inventions of our "Victrola" claims.
So far, it is the old story; but, from now on, there is going
to be a change. The Victor Company is ready and able, as heretofore,
to protect its rights, and will do so promptly and energetically.
The instrument embodying the enclosed horn construction lately
put. on the market under the name of "Grafonola", manufactured by the
American Graphophone. Company, is, in our Judgment, an unquestionable
infringement of our patented rights among other patents. Reissue
Patent 12963, dated May 25th, 1909; and we are taking prompt steps to
press, most vigorously, our claim towards prohibiting the manufacture of
this article by the American Graphophone Company, or any other unli¬
censed concern.
Our suit against the American Graphophone Company, on the said
Reissue Patent, was filed on October 5th, 1909, in the United States
Circuit Court for the Southern District of New York.
"The firm that appropriates the inventions and ideas o i another
is usually behind. They are usually just "too late”. Such a policy
carries no strength of position".
"We have never Known of a great success to come from such
methods, but we have seen many great failures".
"The firm that originates its own improvements and designs has
great moral support from the- Trade in general, a bright future and a
strong rear guard in the line of patents to protect the path that it has
hewn out at its own expense".
"The people who think they are smart enough to infringe any
patent that happens to stand in their way, or the benefits of which they
happen to covet, always have a storm in their faces; their road must
always be rough."
This circular is intended as a warning to innocent parties, and
^?di£at? our Poli°y in the matter; also to make the situation clear
to the Trade that all negotiations between the Victor Company and the
American Graphophone Company towards the matter of licensing the latter
Company to manufacture the "Victrola" type are at an end.
, Yours very truly.
VICTOR TALKING MACHINE COMPANY.
Mr. Bdiaon: — ll/i?/09.
In talking over the toberola situation this afternoon with
Mr. Pettit of the Victor Company he said that he had talked with
Mr, Johnson about the matter and that the Victor people regarded
the enclosed horn business as very important and enormously valu¬
able if the Miller Re-issued Patent could ve sustained. Mr.
Pettit had formerly suggested that we should pay $50,000 for a
license under this patent, limited to cylinder machines, but I
refused to even consider this proposition. Mr. Johnson now pro¬
poses that we should pay $10,000 in cash for a license and $40,000
in case the jbdienieis sustained. ' j--
A
SL&SJzJi -
'mu
Hov. 23, 190'9.
Mr. Walter H. Miller,
Manager Recording Department,
Hew York.
Dear Sir:
In connection with the possible negotiations with music
publishers to use copyrighted music, I -believe you can convince them
that should we make use of copyrighted selections we can do a great
deal for them in the way of gratuitous advertising.
Whenever we get out a new list of records we issue several
forms of printed matter, which give the list a most thorough and
comprehensive distribution. As 30 on as the list is decided upon
we send out an advance list like sample A enclosed, which contains
some descriptive matter about each selection and gives the names
of. the publishers. This is sent to 150. of the leaving music houses
of the country. The same list is then made part of our house
publication, the Edison Phonograph Monthly (see copy B enclosed)
which is sent to 13,000 Dealers in Edison Phonographs looated in
the United States and Canada. A large number of these dealers
handle Bheet music and other muoicai goods. This list also con¬
tains the names of the publishers. "
When- the records are shipped from our factory we include with
them liberal quantities of three other forms. One of these (see
2. 11/23/09. W. H. Miller .
NATIONAL PHONOGRAPH COMPANY .
sample _C enclosed) is hung in the mo3t prominent places in every .
one of our dealers' stores. This gives the name of the composition,
and some reference to its character, hut for want of space it has
not, up to thte present time,, referred to the publisher. We print
and- distribute over tvzenty thousand of this form.
A second of the forms is a six-page list printed in two colors,
in which the composition is named and described. Eight hundred
thousand of these supplements are distributed every month.
The third form is a little publication balled The Phonogram,
in whi di the compositions are also described in detail. We dis¬
tribute nearly six hundred thousand of these every month. In other
words, every con®03ition of which vie make records is included in
nearly two and a half million pieces of printed matter.
Of course this publicity, will be given every composition that
we select to make records of, whether we get the rights to use the
composition at the maximum or some lower price. The royalties now
sought by publishers axe regarded by our people as, in a measure,
prohibitive, and they are likely to prevent the use of more than a
limited number of compositions, although, as you know, in a number
of cases publishers have given us the right to their music at a much
lower price than two cents per record. It -seems to me, therefore,
that publishers of popular music ought to give more attention to the
publicity value of our use of their compositions and be willing to
meet us on some ground that will be mutually satisfactory. It
seems to me that a publisher is better off in the end to make an
arrangement with ns by which we freely use his compositions than
to. insist upon the maximum royalty and compel us to use them spar¬
ingly. In other words, make it fcappiblhlbo use four compositions
when otherwise we could only use one. ’
11/23/09.
V. H. Miller.
NATIONAL PHONOGRAPH COMPANY
If publishers could be induced to give greater consideration
to this advertising side of the question we could considerably
strengthen the advertising that they would get from our printed
matter by referring in all of our foims to the publishers. Por
instance, we could, for a time at least, use a phrase like this:
"Copyrighted 1909,' Smith & Co., Hew York.’.'Sheet music at all
dealers." It seems to me that this publicity ought tp be worth
a considerable sum to any publisher.
One of the arguments used to offset our claim that our printed
matter gives publishers wide advertising is that it appears too
late. I do not think this a valid argument. "Even if it does
appear from two to three months after a song has been presented to
the public, the advertising certainly increases the life of the
song and widens the demand, for it. The success, of popular music
does not lie in the sales of the first two months, but in large and
steady sales over a long period of time. Phonograph advertising
will certainly do this to, as great an extent as any other medium
you can select. ’
I doubt very much if the publishers could think of any kind of '
advertising at any price that would make their sheet music knovm to
thirteen thousand different dealers and in probably seven thousand
different cities and towns throughout the country. They could not
get such thorough publicity even by paying several times the largest
royalties they could hope to receive from any musical composition.
There is no reason why the publishers and talking machine companies
should not look upon the question involved in thiB matter in a
sensible way. The talking unchine companies are willing to
recogniee the rights of publishers and are willing to pay a fair
price for the privilege of using copyrighted compositions. On
4 . ll/23/09 .
compaJ- »• Miller.
the other hand we feel that oirr plan of doing business gives pub¬
lishers a publicity that should have a proper recognition. It
seems to me that publishers and* talking machine companies need
each other and ought to be working together.
I make these suggestions to you in 'order that you may be fully
advised of the exact situation and be able to estpluin to any pub¬
lisher just what we have to offer him in the way of reciprocity for
any musi c that we may use .
Yours very truly,
ELD/lW
President .
1031
MEMORANDUM
Mr. Dyer Smith: ' ' 12/6/09.
In reference to the application on 200-thread, machine, Mr. 'Edison
told me to-day that when he first experimented with the invention
he made the recorder one-half the diameter of the 100-thread recorder
and that it was not until he had laid his plan out on a scale
one thousand times enlarged that he ascertained why it was that
the records were so faint. I think it would add a great deal to
the application if you filed an affidavit of Mr. Edison detailing
his experiences along with the other affidavits. Vie want to push
this case through as soon as possible.
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C?“U. ,gc
National Phonograph Company Records
Correspondence, Foreign (1909)
This folder contains correspondence and other documents relating to the
marketing and supply of phonographs and cylinder records in Europe, Australia,
Mexico, and elsewhere. Most of the items are letters to and from Frank L. Dyer,
president of NPCo. Some of the letters were written while Dyer was in Europe in
July and August. Other correspondents include Carl H. Wilson, general manager;
Walter Stevens, manager of the Foreign Department; and Thomas Graf!
managing director of NPCo, Ltd., and the Edison Gesellschaft. Among the items
for 1 909 are letters pertaining to business conditions in Europe and to orders
received for phonographs and supplies elsewhere around the world. Also
included are letters concerning the introduction of Amberola records and
phonograph attachments, the production of "Grand Opera" selections, and the
production of recordings by Johann Strauss, Leo Tolstoy, William Howard Taft,
William Jennings Bryan, Porfirio Diaz, and others.
Approximately 10 percent of the documents have been selected.
MEMORANDUM
Mr. Wilson: l/7/09.
I hand you herewith letter from Mr. Graf, in vhich he
suggests that we should hear 50# of the expenses of the London
Recording Department. In determining the price quoted him, did
we include any recording expense? If so, then I think it fair
that we should make some allowance, hut if our price to him is
based only on labor and material, and not recording expense, I
think the recording expense should he assumed by the London office.
It might he, as a matter of fairness, that, since the Australian
business absorbs a part of the London records, the Foreign Depart¬
ment should assume q part of the recording expense. What is
your opinion on this point? Suppose you talk it over with me
when you have considered it.
FLD/lWW p. L. D.
"Enc-
[ENCLOSURE]
NATIONAL PHONOGRAPH CO. LTD.,
EDISON PHONOGRAPHS & RECORDS,
EDISON WORKS,
Willesden Junction,
Th.G/Sch.
/
jv.rt’.
December 22nd 1908
Frank L.Dyer, Esq. President,
National Phonograph. Company,
Orange , N.J.
I JaN 41909 I
frank l, pyr/; 1
1 have pleasure in enclosing herewith Trial Balance
of this company, for the two months September and October 1908,
and 32 Journal Entries numbering from 1027 to 1058.
You will be pleased to note that on the trading of
these two month there is a profit of £4386.19.7, and X have
every hope to more than wipe out the loss sustained by the
London Sales Office during the first 8 months in 1908, aB shown
on the Profit and Loss Sheet, which I am sending you under
separate cover.
I arrive at the profit as follows: -
Gross Profit on Sales . .£9315. 7. 2
General Expenses... . . . £4356.0.10
50^ Recording Expenses . ..572.6, 9£4928. 7. 7
£4386.19. 7
V/ith regard to the recording expenses I would kindly
ask you to accept the enclosed R.M.Bill Ho.E254 amounting to
£646.0,3, which covers 50^ of the expenses of the London Record¬
ing Department from the time you received the first British
masters up to October 31st 1908. I think you will find that
[ENCLOSURE]
N. P. Cq„ Ltd.
December 22nd 1908
-2-
I am justified in making this charge, because the price at
which we buy the recordB from you is higher than the price at
which we manufactured them at the Brussels factory with the
recording expenses included. .Since we do not manufacture any
more we are losing the profit we made on the Australian ship¬
ments, and if you let Australia have the records at the same
price at which you charge them to us, they would have an undue
advantage over us if they did not stand their share in the
recording expenses. On the other hand, if you still charge
to Australia the 10 cents price at which they also bought from
us, then X think that a portion of the recording expenses should
be borne by Orange, because Orange is then in the same position
find
as we were towards Australia. I think you will/this fair
and trust you will accept enclosed bill.
Yours very truly .
\ ZG — £—
MAN AGING DIRECTOR
Jan. (5, 190S.
Thorn»s Oral', T?sq. , jranagi W Director,
National Phonograph Co., Ltd.,
London, "England.
Dear Sir:
I have your letter of the 28 nd inst., -:nclo!iing hill
No. E-2B4., amounting to £646/o/3, being 50}! of the expenses of the
London Recording Department up to October 31, 1008, and which I
return herewith.
It noons to no that your recording expenses ought to be aa-
sunea entirely by the Orange factory, and if you will- make the bill
for the entire amount I will see that credit is given.
In the pneo for record is which we quotedyou v/o have endeavored
as far an possible to include recording expenses, so that you
oould not fairly be aslced to paj'’ these item more than once.
We have endeavored to approximate t.h0 recording oxpenseB about as
they are in this country, but if we should .gind after a few months
experience that our estimate la too low we can then udjust the
matter by proportionately increasing the price to you, or by -
reducing the price if our estimate is too high.
I an very glad to have your favorable report showing a profit
of upwards of $20,000.00 for the months of September and October,
and I congratulate you on this result. I sincerely trust that
the future v/ill demonstrate the wisdom of our course in having the
business handled as it now is.
Yours very truly,
ILD/lWW
President,
I return, herewith, report of "OrderB Reoeived By She Foreign
Department for the Month of December 19087
In view of the conversation had with you at the Hew York Of-
fioe regarding Mr, Edison's memorandum, I offer no farther oomments.
If, however, in your judgment, you think it advisable to go into this
matter more fully-and will bo advise me, I will be very glad to confer
with you regarding same.
WS/JSB,
ENCLOSURE «
Yours very truly.
[ATTACHMENT]
J195
MEMORANDUM
n
zAs/os.
I 0.53.1 you:
for Ueoembsr, 1S06.
i to *!r* 12c icon* a note on your report
fk»u tHihk oi' ijis subsection?
yi,n/rm v. T-, T1.
line-
[ATTACHMENT!
Vi. ^ i
^•uri. apt
«Vv JL* e^» O' et4U*J-*,C* &*‘**U** **wt*
t; ^L^CC^C. a -limiter «rr V •
jt!i ^ ct.£iQcCc^u^
?OSIIsl D E P A R T1S E n|_T^
ov- o^CCw-«. t(»«i *•» «^vcr"'v«.*
_ \V^ [L-e^e^ «- Xow jtavL«* <*"
RECEIVED FOR T^2 MONEI OF DECEMBER, 1908
t^tCwv €^X«i, &.£*.«..&. «. bAJ
records
a - urfc rf-,w»g
g
MOULDED RECORDS:
Australia .
Bahama Islands, ..
Bermuda, .•■••••..
Brasil, .
Buenos Aires, ....
Colombia . .
Chile . .
Costa Rioa, .......
Cuba, .
Dominican Republic.
Ecuador, . .
Honduras, .
Hawaii, .
India, . .
Korea, .
Mexico, .
Miscellaneous, ....
Newfoundland, .
Nicaragua, . .
-172,406
139
66
104
71
30
431
144
18
700
1,151
36
35
Philippine Islands,
Peru, . .
Porto Rioo, ...
Santo Domingo,
San Salvador, ,
South Africa, .
Venezuela, ..«,
West Indies, ..
98, 348
67 r
-952 ^
120 - -
702
29
676
313
405 i
100
632
52
499 i
106,191 (
AMBER01 RECORDS:
Australia,
Bermuda, .
Europe, ..
Chile, ...
Hawaii, ..
Honduras,
Mexioo ...
Ecuador, .
32,500
[ATTACHMENT]
Carried forward,
32,688
Miscellaneous, . 20 347
Porto Rioo, . . . . 68 _
South Afrioa, . . 414
West Indies, . . 1Q4 _ 12_
165,241 33,461
GUARD OPERA RECORDS:
Australia, . . . .
Bahama Islands,
Brazil, .
Chile .
Colombia, .
Ecuador, .
Miscellaneous,
Nicaragua, ....
Peru, .
Porto Rioo, ,
Venezuela, .
West Indies,
2
18
19
46
11
10
164
40
• 1
119
2
267
CONCERT RECORDS:
India, . 19
Venezuela, . 18
Australia, . . . 6_
43
RECORD BLANKS:
Australia, . 1,500
Mexico, Chihuahua, . -59
Miscellaneous, . 18
Venezuela, . . .
1,500
147
_ 12.
. Total number of Records ordered, including Moulded,
Amberol, Grand Opera, Conoert and Blanks, . 346,756
141,669.
PHONOGRAPHS
GEM: OLD STILE:
Australia, . . . .
Honduras, .
Miscellaneous,
[ATTACHMENT]
November • December
Carried forward, . 255
West Indies, . . . ., 3
Panama, . . . 1
259
GEM: NEW STYLE:
Australia, . . . .
Honduras, . 1
Miscall., Panama, . 3
Panama, San Pablo, . 3
West Indies, . 2
9
60
105
STANDARD: OLD STYLE:
Australia, . 485
C.A. , Nicaragua, . 1
Miscellaneous, . 2
Porto Bioo, . 4
West Indies, . l
433
540
2
STANDARD: NEW STYLE:
' Australia, ....
Ecuador, .
Miscellaneous,
Panama , ••••«••
West Indies, ..
20
1
104
125
HOKE PHONOGRAPHS: OLD STYLE:
Australia, . ,
Porto Rioo, . .
Venezuela, . .
West Indies, .....
HOME PHONOGRAPHS: NEW STYLE:
Miscellaneous, . __ 56
Porto Rioo, . . . . . . 1 _
West Indies, . . . . 1 _
2 58
[ATTACHMENT!
ElIUIS-H PHONOGRAPHS: OLD SIHE:
Australia, .
Colombia . .
Miscellaneous, . .
Peru, .
41
2
43
CONCERT PHONOGRAPHS: OLD STOLE:
Venezuela, . .
TRIUMPH PHONOGRAPHS: NOT STOLE:
Miscellaneous, .
54
COMBINATION PHONOGRAPHS: STANDARD:
Australia, .
Brazil, . . "
t Honduras, . . T
Miscellaneous, . . . -
West Indies, . ...!!!!!!!!!" 1
T
825
3
3
COMBINATION PHONOGRAPHS: HOME:
Australia, . .
Brazil, . .
Miscellaneous , . . . . ,
Porto Rico, . .
COMBINATION TRIUMPH PHONOGRAPHS:
Australia, . .
Europe, . !!!!"!!”*!!!* 1
porto rioo, . i
' Z
108
108
COMBINATION ATTACHMENTS:
Australia, ..
Bermuda, ....
Miscellaneous
Peru, .
Porto Rioo, .
West Indies,
12
108
1
5,014
122
[ATTACHMENT]
BUSINESS PHONOGRAPHS: DIRECT CURRENT:
Miscellaneous, Buenos Aires,
December
BUSINESS PHONOGRAPHS : SPRING MOTOR:
Miscellaneous, Buenos Aires, . 2
" Cuba, . . l_
3
I.O.S. ENGLISH- SPANISH:
Par A, Brazil, .
Honduras, .
San Salvador, .
FILMS
CLASS "A":
Australia, . 16,455
Buenos Aires, . 2,765
Mexico, . . . _ .
Miscellaneous, . 3,435
Peru, . . . . . 5.485
26,160
16,560
4,575
2,675
5,710
29,520
CLASS "B":
Mexico, . 5,606
Miscellaneous, . 2,050
Peru, . 4.550
12,386
1,045
1,045
UNDERWRITER MODEL:
Miscellaneous,
2
UNIVERSAL MODEL:
Miscellaneous,
PERU?
EXHIBITION MODEL:
Buenaventura, Colombia,
[ATTACHMENT)
-6-
NUKB.ERING
November
MACHINES
Ceylon, .......
Australia, ....
Colombia, .
Cuba, .
Ecuador, .
India, .
Japan, Kobe, . .
Mexico (Hapimi)
Miscellaneous,
Porto Rico, ...
Deoember
4
PAN HOIOR OUTFITS
Bombay, India, . 6
Miscellaneous, . 10
16
[ATTACHMENT!
BEQUESTS FOR OAIAIOGUES . RECEIVES DURTWG Mm
" (West) . . .
Asia Minor, . i
Brazil, . "".WWW’!!! i * 10
British Guiana, . I!!!!!!!!!.,.!!! 4
British T?est Indies, . ].”* 7
British Honduras, . .
California, . ”**“”** j
Canary Islands, . \
Chile, . . I.)" 7
Colombia, . 4
Costa Hioa, . ;..!!!.!!!!! 2
Cuba, . !"!!.’!l8
Ecuador, . «
PERSONAL AHD COHITDEiiTIAL
Harch 19 , 1909.
Thomas Oral' , "Esq., Managing Director,
National Phonograph Co., Ltd.,
7/illesden Junction, London.
J'y dear itr. Graf!
Vfe have been thinking very seriously, in oonnec-
tion with the Amber ol "business, of going after some of the Grand
Opera talent, but we find that most of this talent is tied up toyth
contract either with the Victor Company or with the Ponotipia
Company. I do not think it v’ould be wise for us to antagonise
the Victor Company by attempting to secure their own artists when
their contracts expire, because that would produce a bad feeling
between the two concerns, and v.e are now perfectly friendly vdth '
them; besides, if ve started on a bidding contest for talent,
no one could tell where the figures might go to.
The I'onotipia Company have some sort of an arrangement with
the Columbia Company under which the former sends over its matrices
and allows the Columbia Company to strike off copies on aome sort
of a division of profits. It occurs to me that we might possibly
make an arrangement with the I’onotipia Co. under which they would
permit us to make use of the services of such artists as they may
have contracted for exclusively if we paid them a fair compensa¬
tion. I am not very familiar with the methods of doing business
in "Europe, but would like to have your views as to the wiBdom of
3/19/09,
Thomas Graf.
YHARMOO HRARDOHOHR JAMOITAH
your going to the Ponotipia poople and attempting to make some
sort of an arrangement with them. Before deciding definitely
whether you should go, I should like to hear from you, and in
writing you can give me some sort of a private code that I can
use in cabling you, in order that this matter may he kept entirely
confidential.
Yours very truly,
PXB/rW
President .
4/19/09 .
With the exception of 'Europe, all foreign sales are handled,
through the Fo reign Department in New York. We hill to the
Foreign Department in New York all goods shipped to Australia,
South America, Mexico, Asia and other miscellaneous countries,
so that the total sales of the Foreign Department in New York
should he the total of all foreign countries outside of Europe.
We hill direct to London, Berlin and Paris.
JK aV
a?'
I. w. w.
Peter Oohreftenko, the young man mentioned, in the attached lettey
is now (arid has been for the last two or three weeks) working for a
Shoulder Padding Co. in East 34th St., Mew York. He is earning $6.00
per week with no chance of advancement, and just as soon as the orders
fall off he will lose his position. His mother and father in Russia
are depending on him for their support and he sendB one half of his wages
to them each week. Mr.Borisoff has kindly allowed him a room to live in
and does not charge him anything for it. Although he is not now in desti¬
tute circumstances, his prospects are not very bright.
Mr. Borisoff who runs an immigration bureau and Steamship Ticket
Agency, told me that Peter and another young Russian whose first name is
Pantelli walked into his store about two months age and asked him if he
could do anything for them. He gave them a place to sleep and they fin¬
ally obtained work, Pantelli is working for a butcher in Brooklyn and is
earning $10.00 per month and his board. His surroundings are very un¬
pleasant and Mr. Borisoff says he would like to see him get away from
there as soon as possible.
These two young men are about 19 years of age and Mr. Borisoff
assures me that they are ambitious, honest and worthy of encouragement.
While theyAat his place be^pre they obtained work, they both started to
learn the English language and they can both talk fairly well. They were
both working in a foundry in Russia and owning to a strike and political
disturbances they lost their positions and then came to this country. He
had not heard of them before they entered his store, and he says he was
struck with their general intelligent appearance and decided he would
do what he could for them. He hopes we will be able to do something
for them and appreciates Mr. Edison's kindness in making an investigation.
ace/bab
4/21/09.
A. C. Frost,
[ATTACHMENT]
a t -
f'Licsb tqoq
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F3AiT< •.’. 'Jy;- h. J ^aSScuAu
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Suffering ^rovu Hn-€ 'Zo&hf
br—iHtiJiou. frit*, hr £jom./ ke 6-ei ■iock^i-M' 6^*hL^f^
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[ ^ ^u,-eJ> f& T^f#- kr-^ouA . cLhc^ekou . T^/
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<?ekf Oohr-eAH£A^ko , Cary of Mr. ft or is o;^,
^ <%3 ShrZMjr 2/cf, tfeio yerr^.
. lo£$fc>^ U>as-ixu^ ge^d hrW records
| /z^;^<lUUd hs_-Cl 0tcf ^ret^uhcuUu-es KotyuA OuJ- a. Success .
| A/^^^W^'eUcr|M-S ^ SJ^rztk'ou. 3 — nnbnts>S f K-l^clU
j fo€cA^ ouh-q i^rS kr-^o- hi #~ue kitus^Lf ruuok
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I A.H.S W-€aJz.
H-L^$4u%3 you. kiS (UroUaJ. gr^eJ-iyg# dug
[ATTACHMENT]
$00 cL^UnSUt* , fo. (vih/L- Us Oco^Ixa^,
a^HU^re^ ho„^ , akriu
ivjpri+ulug^f rW diffieu&ki *,«__ -ArriK^ .
0^0 (U T^-e K-^jZjd- qu^ t&ie oceaJiou. \6u i^^ssiotx
^J, — lrvu^'‘ dju^-ej\r TtgtvTd. .
K[ouSS S-in.ze^JL^,
[ATTACHMENT]
LEO TOLSTOY
in announcing
two records in English by Count Leo Tolstoy, which we have been
fortunate in securing as a result of the mutual admiration and
friendship between Mr. Edison and Count Tolstoy, although they are
not personally acquainted. «
m (abty
The records in question were made in January , (Dec . 24th in Russia)
at a time when Count Tolstoy was recovering from a serious illness.
This circumstances, together with his great age (over 80 years)
and the fact that the records are made in an acquired tongue, has
prevented’ us from securing the results which would be expected of
a -young and vigorous man talking in his natural language. The
records are weak, and because of a strong foreign accent are dif¬
ficult to understand; but they contain messages to the American
people from a strong and lovable character, and as such will prove
of interest to the many millions of English speaking people
throughout the world who admire and revere Leo Tolstoy for what he
is and for what he lias accomplished. The son of a rich man and
himself a man of great wealth, he lias devoted substantially the
whole of a long and useful life to the good of humanity. He has
been essentially the friend and adviser of the poor and unfortun¬
ate. Living as he has in one of the most despotic countries, hiB
life has been a perfect exeng>lifi cation of simple democracy. He
might have surrounded himself with all the luxuries and comfortB
that wealth can give, yet he has lived the life of a simple peasant,
and has met with good sheer the sufferings and pangs of the unfor¬
tunate. To the sorrowful, tothIfflicted, to those seeking for
light, he has been a strong support. Such a man, wherever he is
found, awaken the very deepest feelings of admiration and affection,
We have great pleasure
the publi cation of
[ATTACHMENT]
(2)
and we consider ourselves peculiarly fortunate that Count Tolstoy
should have consented to make the Edison Phonograph the instrument
hy which his verbal message may he communicated to the people of
America.
[ATTACHMENT!
THE HQS'l'TTT.’RY
(A Parable for Children)
by
Leo Tolstoy.
A benevolent man wishing to do as much good as he could, bethought
himself of establishing a hostelry for pilgrims and of providing it with
all that could be of use or give pleasure to man, he arranged comfortable
rooms, good stoves, lighting, storerooms full of every kinds of provisions,
vegatables and refreshments, also bedding, and clothes of every kind in
such quantities as to suffice for a great many people.
The benefactor then drew up some instructions as to how to make use
of the hostelry and of that which it contained. These instructions he
nailed to the front door so that all entering might see them. It waB state
that every one that entered the hostelry might remain so long as was good
for him, might eat and drink to his heart's content and make use of all
that he found: olothes, boots, provisions. The only reservations mentioned
were that guests should not take more than what they actually needed at
the time being, should not quarrel and should leave the inn as orderly
as they found it.
Having arranged all this the benefactor himself retired.
But it so happened that the pilgrims entering the hostelry did not
take heed of the instructions and began to make use of what was put at
their disposal without any consideration for others, appropriating each
one for himself as much as he could although not needing it. They began
to quarrel over the goods, snatching things from each other, spoiling them,
and sometime destroying them out of selfish malice so that others should
not get them.
Having thus squandered everything they began to suffer from cold
and hunger as well as from the injuries they had inflicted on each other.
Then they took to abusing their host for having prepared too little, for
allowing all sorts of bad people to enter, for not having placed guards.
[ATTACHMENT]
(2)
Others said it was no use abusing anybody as the hostelry had of itself
coaie into existence and they cursed the place itself.
In this same way we have in our world those who do not pay heed to
the instructions for the guidance of our life written in our hearts and
in all the great teachings of the wisest of mankind, and w/ho live
according to their own will and not that of their benefactor. They ruin
their own short lives and the lives of others, blaming each other, God,
the universe, anyone and anything but themselves.
And yet, were men only to understand that their welfare depended
solely on themselves, and were they to fulfil in this world the will of
the benefactor, - they would enjoy such bliss, greater than which they
cannot oonoeive.
[ATTACHMENT]
from
"The Kingdom of God ie Within You",
by
Leo Tolstoy.
The men who enjoy the advantages of a system maintained by violence,
and who at the same time declair that they love their fellow men and
cannot understand that by their whole life they are injuring them, are
like a naan who has lived all his life by robbery, and who, being caught
■with a knife uplifted over his screaming victim, pretends not to know
that he was doing anything unpleasant to the man he was about to murder.
Just as this robber cannot deny what is obvious to all men, so can we
no longer pretend that we donot know of the thousands who are shut up in
prison; that we donot know of the courts of law in which we ourselves
participate, and which at our demand, sentence those who threaten our
property or safety to imprisonment, exile and death.
We know that if we are not interrupted at dinner, theatre, balls,
drives, races and hunts, it is only oweing to the bullet in the police¬
man's revolver, or the soldiers gun, which willpierce the hungry belly of
the disinherited man who watches our pleasures round the corner, licking
his lips and waiting to interrupt them as soon as the policeman with the
revolver goeB away or there are no ippre soldlerB in the barrackB ready
to appear at our first call.
"All that is false", some people still endeavour to object,
"Hobody .forces the people to work for landowners or in factories. It is
all settled by free mutual agreement. Personal property and capital are
indespen sable because they organize labour and provide work for the work¬
ing classes. Labour in mills and factories is not nearly sp dreadful as
you describe. If abuses do exist, the Government and Society take measures
[ATTACHMENT]
(2)
to atoll eh them, and render the work of the labouring-classes ever more
easy and even pleasant. The people are accustomed to physical toil, and
as yet are not capable of anything else. The poverty of the people is the
result of the ignorance, intemperence and brutality of the people them¬
selves, and we, the ruling classes, counteract this increasing poverty
by wise administration; we - the capitalists - obviate it by the diffusion
of useful inventions; we - the clergy - by religious education, and we
- the liberals - by the organisation of trade unions, and the diffusion
and promotion of education. By these means we promote the welfare of the
people without making any change in our lives; we donot wish all to be
poor like the poor; we wish all to be rich like the rich. It is necessary
to restrain evil doers, and for that purpose, prisons, mines and gallows
are established. We ourselves would be glad to see them abolished, and
are working hard in that direction", and so on, and so on.
Were it not for such hypocrisy, it would be impossible for men to
live as they do now. But even hypocrisy has its limit, and I think at
the present time we have attained that limit.
L PHONOGRAPH COMPA
April
1909.
Thomas Graf, Esq. , imaging Director,
national Phonograph Co., ltd.,
V/illesdbn Junction, London.
Dear Sir:
I have
yesterday au follows:
“itoocuver iCdison-iicll off-m
£5000. I consider it can he <
have, any interest, in proposal,
Kcrfco, leaving completion of ix
r.v. uajae of ::.’in-i and booh;; for
U-.ined at lover price. If you
ill negoBinte direct or •.•n-o-vih
•njvw.t.nt to you."-
I Ivi ? cabled you to-day ea follows:
"If toy buying name we could nr eve; it use of nam Edison in
connection ..lUi phonc/,-fr.-..ph,-, . :n. •..•corns, ut o .. In- dr'vc
Offer ore thousand pounds. Keco'rae advised or negotiations . "
The offer of £1000 which I suggest is purely tentative rad v
ora go higher if necessary, tout their offer of £5000 is too much.
Of course, should we conclude this arra.nger.ient, you want to "oe
satisfied toy the advioc of counsel that no one -else will toe, per¬
mitted to use the Edison name in England except ourselves. It
is not very clear to me what you mean toy the word "tooolco" in your
cable; that is to say, I do not knov; whether you mean, the Minute
and other record books of the company or their books of account.
Please advise me as to thi3 point.
Yours very truly,
PLD/lVAV
: resident .
4/29^09i4ational phonograph company
Thomas Graf ,
P. 3.
I notice in the trade pap :rs that nr. Hough, liaa "bought
out the "Edinonia Company. Of course, if records could bo rear hated
under the nemo "Tiidiaonia" wo would not be gaining very much. You
should ko op thin point in railed, because v?c do not want to leave a
loopholo in cleaning up the on thro situation.
,1^3**
"</S ~~~~
Jiy J?DarB- Hlrd= Youmans: V. Millers Aiken: Dolbeer: HcChesney:
- //Iretons Philipa. Wurth:
Please note that nothing father is to he done
in. connection v/ith the Tolstoy
or listing them, until further advised.
5/ll/09,
records, that is, towards making
Copies to Messrs. Vyir: Weber:
C.H.W.
V"
FOREIGN DEPARTMENT
NATIONAL FH ON El GRAPH DEL
EDISON MANUFAEITUHING CD.
HATES MANUFADTURINE CD.
SUBJECT :
BY MR. EDISON.
Mr, C, H. Wilson, General Manager,
national Phonograph Co.,
Orange, H. J.
Dear Sir
In September of last year, the matter of supply¬
ing a Record made hy Mr. Edison, was Brought up at a Committee Meet¬
ing, and my understanding was that such a record would he supplied.
Has anything Been done in connection with making this record?
Yours very truly.
'mv-Ms
Manager foreign Department
[ENCLOSURE]
[ENCLOSURE]
[PHOTOCOPY]
H COMPANY
’
f />, , , /
) .. .
3 S&y 17, 1909.
2homo Oral, “iSncj., rmriaging Director, ' . • ...
ilati onar 'Phonograph Go., .;X,td.,
Y-iilosden Junction, London r
Jiy dear tie , Graf !
Yours of tjv. 6th Inst. has been received, and
I am very sjnch pleased' to hoar that, nacle_an arrangement
with Johr-an strauso 'as orohebtra1 leader’ up -.to Nay 1, 1911. This
is a very similar aiu.-'ungomonT,, apparently, to the one I have com¬
pleted in §hia country *;:it3t Victor Herbert and' concerning which
vou nsj:- !iavs aeon references in the American trade' press. '
I -would liJcc 'to take, aor.10 'advertising advantage of the ’ /
Strauss '06 ft tract, because there ought to be considerable sale 'for
ti’.ese records in thio country, since both "Edward Strauss, 'and
Johann Strauss, the elder, are very well 3mov«x'_here.
Before putting out any definite announcement, it might he
well for you to arrange with Strauss giving us the option of . ■
continuing the contract for: two years beyond May 1st, 1911.
Also' send me, -if possible, a photograph of Strauss; a short'
biogv-phy; a statement of his musioal services and a list of his.
corn. o sit ions , if any, all for advertising purposes. 1
Yours very truly,
ELI )/lW
President
Thomas Graf, Boq., Managing Director,
national Phonograph Co., Ltd.
Willesden .Tunotion, London.
My dear Mr, Graf:
On the subject of acquiring from the Receiver
of the Bdls on-Bell Co, the rirht to +i1P1
1iG.11 to ut.e the name "TSdiaon-Bell", I
“ lm *" «» K». »«s ta ,lMoh .to ,t,tea
Ihai . Hough oallod on him recently and said that "ho (Hough)
tad uogulred tta righto or the neor of the home •Edison-Bell • „„aer
* lioenoo »hich Edisonia tad given th« or purctatad in son. wy
fr« Edison- Bo 11 Co. a Xmi time ago!, and that ho (Hartal is
looking into the matter of this lioenoe ana «11 later adviso me.
I oell year attention to this matter because » do not .ant to mate
the mistake of belicylng that » are buying something to „Moh
v/e could not get a good title.
I .ill suggest to Mr. Marta that ho oonfor with you so as to
taep you fully advised In order that you may not .ark at oro.s
purposes, hut I .ill not tell him that you hayo dons anything
in reference to the .letter, so that you may be governed accordingly.
Yours very truly,
pld/iw
President.
FOREIGN DEPARTMENT
NATinNAL PHDNnERAPH CEL
EDI5HN MANUFACTURING CO.
HATES MANUFACTURING EH.
HS 10 Fifth Avenue.
Hr. S . L. Dyer, President, _t_
national Phonograph Co., ?
Orange, IT. J.
Dear Sir:
I quote as follows from a letter received from our ilr. Thomas 3. Kennedy,
in reference to grand opera selections:
"'"e would also suggest that you put out as soon as possible a good
line of four-minute grand opera eeleotlons in Italian. The comparatively
poor demand for the grand opera two-minute reoorde should not bo taken as a
criterion of the value of grand opera selections in general, as it is precisely
on account of the shortness of the two-minute records (as well as tho lack of
chief celebrities) that our grand opera selections have not been very much in
demand. 11
Manager, Foreign Department.
NATIONAL PHONOGRAPH CO. LTD.,
EDISON PHONOGRAPHS & RECORDS, "‘TJoiT*
- s EDISON WDRKS,
i^omaiasju,<nu Willesden Junction
DIVIDUAL AND MENTION THESE INITIALS 1 ' . /// , j\( //.’ U&Y % 6th , 1909
,., , /
Jif ,/
*iv
L,. Dyer Esq., President,
I vT"' ,/ National Phonograph Co.,
0 R A N 0 E., N.J., U.s.A.
r
Dear Mr. Dyer,
L .Phonograph Co. t i.td ,
^ith reference to our cables and other correspondence on the
subject, I regret to advise you that on making the offer of £l,000
the Receiver, without waiting for any augmentation on our part
has accepted an offer from some other party, i do not know the
name of the party at present, but 1 presume it is Mr. Hough.
ywns^very^^uiy)
\ Managing Director^ &.
Telegrams ; ’* RANDOMLY."
COMPAGNIE FRANQAISE DU PHONOGRAPHE EDISON,
Edison Works, Willesden Junction.
London, N.W. May 27th 1909
Th.G/Sch.
Frank L.Dyer, Esq. President,
National Phonograph Company,
, Orange, N.J.
, t
V Dear Mr. Dyer,
I herewith heg to hand you Profit and Lobb Sheet of
the above company for the 4 months ending December 31st 1908.
The loss of the French company during the previous
year 1907 was smaller than before, but it still reached
Frs.117.381.32. Compared with this figure the year 1908 BhowB
an improvement. However we are again on the wrong side with a
very good amount, the loss for the 4 months being Prs. 32. 768,29
and with the loss of the first 8 months added " 27.276.61
. ■ 'Frs. 60.044,90
or approximately £11.600.
The fate of the French company was decided upon by
Mr. Edison last year. However I have not been in a position
until now to carry it out entirely, because it is impossible in
France to find a suitable party to continue the business, and I
do not believe that it is Mr. Edison's or your wish to entirely
withdraw without some kind of a representation. There are
several nominal factors in France, but they are all business¬
men in a smaller way, who have had difficulties even in acquir¬
ing the small stock of a few thousand records which was necessary
in order to give them factors' prices, so that there is not the
slightest possibility to come to an arrangement with these
COMPAGNIE FRANgAISE DU PHONOGRAPHE EDISON,
Edison WorKs, Willesden Junction.
London. N.W. May 27th 1909
Prank L.Pyer. Eag: -2-
people, and 1 do not Bee any possibility of interesting an
outsider sufficiently to take over the business and stock, because
the belief in the cylinder business in that territory, for
reasons which probably could be explained but for which I am
not responsible, is not very great, the more so since all the
other firms who manufactured cylinders there- Path&, Ullmann,
Columbia etc.- have given it up, or are about to give it up.
I also could not yet see my way to entirely close down .because
of the considerable stock of records we have there, and our
other obligations in the way of leases etc. We have not been
able yet to dispose of our lease, but there is a possibility
that we may be able to do so in the very near future. There
being no likelihood of having the stock transferred to some
other party, we would in closing down have to consider the
removal of a stock of more than 140,000 records to London, a
stock on which we have paid as much as 10 centimes per record
for custom duty, freight and octroi, which, if the stock were
transferred to London, would not only be lost, but in addition
the same expenses would have to be paid over again on intro¬
ducing the same goods into Prance. What I propose to do is
to move our stock from the expensive quarter where we have it
now to our former factory at Levallois-Perret, and continue
the business there at nominal expenses, without the high salary
COMPAGNIE FRANQAISE DU PHONOGRAPHE EDISON,
Edison WorKs, Willesden Junction.
London, N.W. 27th 1909 .
Frank Dyer. Esq: -2-
of the managing director etc. and with a small rent only, the
rent of the plant at Levallois-Perret being Frs.1350- per annum
only. I have given Mr. Galloway notice and he leaves the
company end of .Tune.
Should this plan not he approved, then I suggest that
you go into it with me during your visit here.
The figure given above as loss is to be augmented by
Fr si 2112. 05, representing 10^ depreciation on furniture and
fixture etc., which you will find in the first Profit and Loss
Sheet sent you. Furthermore we have made a total reserve of
Frs.13.563,05 for doubtful debts and consignment accounts.
KEHERAL EXPENSES. The enclosed Profit and Loss Sheet for the
4 months ending December 31st 1908 shows a number of important
decreases in general expenses under the different headings,
among them a decrease of Frs.21.751.50 for advertising; several
accounts show a small increase, the largest being Frs. 2920,45
for custom duties, which is explained by the fact that during
that period custom duty had to be paid on all the records pur¬
chased. The next largest increase is Frs.852.30 for octroi,
which is explained that during the same period in 1907 shipments
were made from Levallois-Perret, which is outside the octroi line,
while in 1908 all shipments were made from Paris from the stock
COMPAGNIE FRANQAISE DU PHONOGRAPHE EDISON,
Edison Works, Willesden Junction.
London, N.W. ^ 27 th 19°9
on which octroi had been paid. Era. 830.40 for salesmen,
expenses which we incurred hy putting more travellers on the
road with a view of increasing our business by this means.
There is an item of Frs.4980.85 in the column headed
"Increase in value of stock", which is explained by the dif¬
ference in the cost price of the records caused by our new
price arrangement; the new cost price being 53$ centimes in¬
cluding freight and duty, against 50 centimes at which a part
of the stock was formerly bought from the Levallois factory;
to bring the cost price to a uniform figure, we have to make
this adjustment.
Under "Shrinkage" there is an item "Broken Wax"
Prs.2973; this represents recordB taken back under the exchange
system, of which the French company Btood the loss.
I also enclose Trial Balance for December 1908 and
Journal Entries numbering from 795 to 833.
Yours jre ry tryly,
GENERAL MANAGER
NATIONAL PHONOGRAPH COMPANY
Thoms Graf, T5sq., Managing Director,
2fational Phonograph Cc., ltd. ,
V/illesden Junction, London.
Dear Sir:
June 1, 19 OS.
The Pilamentophone Co., Ltd., 4 Booth at., Piccadilly,
Manchester, have written -us that they arc interacted in anev/ dia¬
phragm called the "Pilomentino /jtfber". They claim that t is
diaphragm Jiao Been on the English market for the past two years
and has mot with gratifying success. let me knov; if you ever
hoard of this diaptoagii, and if so,' whether it amounts to anything.
Y urs very truly,
etd/iww
President,
HQ. 752
HEMORAWDUM & / V-
NATIONAL PHONOGRAPH COMPANY ~/J^ ‘ , f
Hr. Dolbeer:
June 9, 1909.
Returning herewith letter from Howard E. Wurlitzer,
I beg to advise you in reference to the second paragraph thereof
that Hr. E'ii 3 on hao not made a:sy settlement of the Moriarty
matter nor is a settlement contemplated. The situation is tJiat
when the International Graphophone Co. was formed in the early
days it became the owner of a block of stock of the Edison Phono¬
graph Works. Hr. Mortar ty eventually got in control of tlie
International Graphophone Co. and later on became an important
factor in the Edison United Phonograph Co., which was organized
independent of Mr. Edison to e:qploit the foreign rights to the
phonograph. The Edison United Co. then issued $300,000 in bonds,
as I remember the amount, and these bonds ware secured by various
collaterals,, including 90/ of the stock of the International
Graphophone Co. This Graphophone Co. stock has been deposited
with the Trustee, and I undern tand the Edison Phonograph Works
stock was later deposited with the Trustee so that it might not
get into the hands of Moriarty. The situation you'see is very
complicated. Mr. Moriarty is dead, but I understand that while
he was living many things were done that could bo very severely
criticised. The Edison United Phonograph Co. has defaulted on
its bonds and the whole matter is pretty effectively tied up.
If Mr. Wurlitzer ' s mother-in-law is interested in the bonds
of the Edison United Phonograph Cn., they ought to be worth some¬
thing, because the Edison Phonograph Works stock, if 30ld, would
pay a dividend, I should think, of between 25^ and 50^ on the
bonds. If, however, she is interested either in the stock of the
International Graphophone Co. or of the Edison United Phonograph
Co., I would not regard the property as worth anything, because
3?. IC. Dolbeer. n«t.on*l pho^aph company 6/9/09.
it lias been practically wiped out "by the prior claims of the
bondholders.
I am not sure that the Mercantile Trust Co. is the Trustee
under the of the Edio on United Phonograph Co . , but on
reflection I am inclined to think that the Guarantee Trust Co.
is the Trustee.
I’hD/lVAV
i’. I,-. I).
(t\ .f>. ' ? oJ^
NATIONAL PHONOGRAPH CD. LTD.,
EDISDN PHONOGRAPHS & RECORDS,
EDISON WORKS,
Willesden Junction.
;™ Th.G/kj ^±ZCv,,,
June 25th, 1900.
CONFIDENTIAL.
Frank I.,
Dyer Iso., President,
National Phonograph Co,
ORANGE., M.J.,
Dear Mr. Dyer,
I herewith beg to give you figures of the sales of this
Co.npany during the month of May:-
95 Gem Phonographs
60 Standard "
9 Home »
1 Triumph "
5 Commercial
2 "B" Underwriter Kinetoscopes
26,955 Amberol records
32,798 Standard ”
63 Opera »
4 Concert "
213 Regular Blanks
73,965 feet of Film
269 Attachments (various types)
1 Language Outfit.
£3,870. 8s. 9d. @ J&.80 - ^18578.10
You will note that there is a marked improvement in the total
sales as compared with the two previous years.
Record Business. The record business for the month of April 1909
has been the best since 1904. We sold 58,000 records in 1905,
99,000 in 1906, 94,000 in 1907, 97,000 in 1908, and 106,000 in 1909,
N. P. Co., Ltd.
June 35th, mo 9
Frank L, Dyer EBg,
of which 40,000 are Amberol records. This increase in April has
been followed by a drop in May,
Machines The machine business has been extremely small. X have
reported to you about what I consider the causes. With the reduction
of the Oem price which I have announced, and the new Fireside machine,
I expect a very good revival of the machine business during the next
six months.
Films, This business has been very satisfactory during the month
of May. Muring the summer months, as quite a number of picture
theatres are closed, we must expect a slight falling off. This branch
of the business could be developed to a very great extent if the
standard of our films could be raised. Our out-put to-day has been
very much improved over what it was two years ago, but compared with
the high standard of some European makes, we are still much behind.
I also enclose statement of our jobbers' business for the month
of May.
Yours very truly.
Managing Director,
EDISON— GESELLSCHAFT M.B.H.
A'!.
Edison Works, Willesden Junction.
Frank L. Dyer Esq., President,
national Phonograph Co.,
ORANGE., N.,T. , II.S.A,
June 35th, 1909.
^ RECEIVED.^
’ lilt 61909
’Prank l. dyer., j
Dear Mr. Dyer,
I received your favour of 13th ult. , and I must apologise
for not having replied at an earlier date. The reason is that 1
have been waiting to see the figures of our March balance in order
to intelligently understand the status.
Your remark about the falling off of the German sales
during the first month of the year is quite correct, but it is not
peculiar to Germany only. We had a very good December trade in
this country , and an immediate falling off in January. In Germany
we also had early in the year an exchange system of three to one,
which of course appeared on the surface as a boom in sales, but was
really a loss. The small business during the first few months of
this year is really preferable to the considerably larger sales of
last year. The March balance which 1 am sending you under separate
cover shows a difference - minus - of Mks. 11,136 in the present
year as against Mks, 13,320, so that we are slightly better off
than last year. Furthermore the low figures of the first few months
have since been improved. In April we have done practically as much
business as in the same month last year, and as you will note from
the report for May, which I sent you some time ago, the May business
.t “RANDOMLY/*
EDISON— GESELLSCHAFT M.B.H.
Edison Works, Willesden Junction.
Th.o/.MJ London, N.W. June 25th, 1909.
FranK L. Iiyer Esq. -2-
this year has reached a higher figure than in the same month during
any of the previous years. This also holds good for the June
business, for which I have only the figures up to the 19th. We
have reached already Mks. 18,050 as against MKs. 5,030 last year,
and a minus of about Mks. 5,000 occasioned through the credits
given under the price reduction scheme in June 1907.
The record sales during April and May have Kept up quite well,
and compare favourably with previous years. The drop in the record
sales is noticeable only during January, February and March, but
this drop is due to the sudden drop in January which I explained to
to you, and to the smaller record turn-over during February and
March this year as against the larger record turn-over of last year
occasioned solely through the exchange system.
In the machine sales we also register a decrease which is due
to the increase in the price, and the trade depression, which would
first act on the sale of our machines. But we notice an improvement
already, and with the reduction of the Gem price, the Gem Attachments
and the new Fireside Machine, I expect a very great improvement in
our machine sales during the next six months.
The figures give here will already improve your impression
of the German business , and I will only add that we have been able
EDISON- -GESELLSCHAFT M.B.H.
Edison Works, Willesden Junction.
London, N.W. June 25th, 1909,
FRank Ii. Dyer Esq.
to do very little this year yet in the Amberol records in Germany,
because we have not yet a German list, but as soon as we have a
catalogue of German Amberol records to offer, our Amberol business
will begin, and if through advertising Amberol records are particular¬
ly pushed, we will very soon again be able to build up a profitable
business in Germany.
The two-minute b’.isiness as you know is not profitable, because
the price at which Berlin buys the two-minute records is too high
for the low selling price. The salvation however lies only in the
Amberol record, as the two-minute business will not be profitable
unless you can meet the German situation in the way I have suggested
in my letter of March 26th, about which I have not heard from you.
Yours very truly.,
General Manager.
FOREIGN DEPARTMENT
OF THE
NATIONAL PHONDGRAPH CO.
EDISON MANUFACTURING CO.
BATES MANUFACTURING CD.
10 Fifth Avenue.
I hes to tend you herewith the following reports, Complete ?oreigr. Department,
Australian, Mexican and Argentine.
>f 20$ ad vale
At the
possible, i„ order to evade, if possible, an inoreased duty. The duty was inereased
“ adaitional 10& 30 % instead of 20$ ad valoren, but, subsequently, the
entire duty was removed, the Government refunding the difference between the 20$ and
duty, but our Australian office was obliged to stand the loss of the 20$ duty on
immediately reduoed the
account of the : duty 'being removed.
Phis removal of duty caused a loss to the Australian office of £9000 (approxi¬
mately $45,000), which more than wiped out their profits for the first half of 1908.
Another item is the legal Expense, $5180.44. This expense was incurred on
account of the Australian office action against Nonok to sustain our licenses, and this
otion, as you know, has n
authority to charge this t
rried to the Privy Council of England. I have, how-
e to the National Company
another item is Eacohange. Whan 1
ustralien office was first estab¬
lished, the prevailing rate of exchange was $4.86, and they used this rate
for their transactions.
s been reduoed from time to time, until, at uri
san obtain is $4.84. The item $4075.62 ropresc
!6 rates and covers a period of several years.
established Naroh 15th, 1906.
This branch we
1906.
.ishment
undoubtedly due
$1649.07. Chin lo
will note, however,
nearly aa largo ae
at list prices.
although the sales w
ohowa in 1907. Shis
largely to continued business dopression. You
?e greatly reduded, that the gross profits were
ms on account of cany of their sales being cade
A R G 3 IT S I IT B
Cur I.'r . Kennedy arrived in Buenos Aires Usy 25th, 1907, and his first sales were
reported as cade July 24th, 1907.
The attached statement shows a loss for 1907 of $7985.22, end for 1908 of
$19 ,557.14, a total of $27,542.56, covering a period from, approximately, June 1st, 1907,
to January 1st, 1908. She largest item shown on the Argentine statement is for advertis¬
ing, Ur. Kennedy having expended nearly $10,000.00 from July, 1907, to and including 2ecem-
ber 31st, 1908; and in this connection, I would state that Ur. Gilmore , appreciating the
necessity of creating a demand for our goods, authorized Ur. Kennedy to Bpend $12,000.00
per year for advertising. This expense con hardly be ooneidered as a lose, as undoubtedly
he will be greatly benefited from this expenditure on account of the returns which he will
sportation, as a
small space
70 a substantial
til another
NATIONAL PHONOGRAPH COMPANY
FOREIGN DEPARTMENT
F. L. Iyer p 6
cdnnection, I would stats that Ur. Kennedy is obliged to pay $500.00 U. S. currency for
representation in eaoh ’ ’
monthly issue of the magazine "Caras y Caretas," whioh is considered tne hast ad¬
vert i sing me duim in the Argentine, and I enclose herewith a oopy of his "ad."
FOSSICK DBPABTI.BKT MISOSIIAliEOirS SALF3
(Exclusive of the Australian, Argentine and llexioan Offioes)
Shis Department shov/s a loss of 521,759.90. In 1907 we received a oredit
from the factory for $8405.59, this amount representing a cash discount which the
factory allowed on our purchases, and this oash discount, deducted from our General
Expenses, reduced seme very materially. Since August 1st, 1908, when the new prioes
became effective, this cash discount was discontinued. From Uaroh 1st to August 1st,
1908, this disoount amounted to $1949.98, a difference of $6455.61 in favor of 1907.
Seferring to the item of rent, this has been very materially increased, -.-on
aocount of our paying $3600.00 per year rental at 10 Fifth Avenue as against $650.00
per year at 31 Union Square.
It is very difficult for the Foreign Department, exclusive of the branch
offioes, to show a profit, as all goods are invoiced to our branch offices at faotory
cost, end the expense of handling this business, so far as clerical work, rent and other
expenses are concerned, is borne entirely by the Foreign Departrant. One way this could
be overcome would be to charge the Australian, Argentine and Llexican offices their pro¬
portion of the Foreign Department e:menses. This, however, is simply a matter of book¬
keeping, and does not affect the net profits which the Foreign Department, including the
Australian, Argentine end llexioan offices, turn. over to the national Phonograph Co.;
but it would show just what the Foreign Department is earning independent of the branch
offices.
NATIONAL PHONOGRAPH COMPANY
FOREIGN DEPARTMENT
P. I. Dyer p 7
R 3 LI A R K S
If immediate results are desired, undoubtedly a muiSh better showing could he
made, if the Lloxidan and Argentine offices were discontinued and the business in their
territory handled from Hew York, this would effeot-a large saving by eliminating their'
these
operating, expenses. On the other hand, this aot ion would leave^fields open to our oom-
Jeditors and the territory would thus ultimately be closed against us. I do not believe,
however, that you would oonsidor for a moment talcing suoli action, as we must necessarily
look to the future for results.
With the possible exception of Australia, business in foreign countries lias
suffered fully as much, if not more than it has here. In Australia, we have wraoti-
oally driven out all other cylindrical records and machines and the same applies to Ar¬
gentine and I.ioxico. On the other hand, there seems to beA increasing demand for disc
machines and records.; - Shis particularly applies to latin-Anerioan countries,
some of our jobbers and dealers having given up handling our lines, taking up the sale of
disc machines and records, olaiming that the trade demands louder reproduction, a better
class of grand opera talent, etc.
In conclusion, I would soy, appreciating that suocoss in business is necessar¬
ily measured by the amount of money made, I have used endeavor to increase the sale of our
goods, at tlie same time keeping down our expenses to the lowest possible amount, end.
I believe, that our foreign managers, Uessrs. \typer, Kennedy end Iliabett, are working with
me in this matter.
Respectfully submitted,
L'onager , Foreign Department.
ws/s
FOREIGN DEPARTMENT
_ OF THE
NATIONAL PHONOGRAPH CO.
0%cmw> a CdUoru, EDISON MANUFADTUHINE CD.
HATES MANUFACTUHINE CD.
July 6-1909.
Hr. P. E. Dyer, President,
national Phonograph Co.,
Orange, H. J.
Dear Sir:-,—
I am in receipt of a telegram from Mr . Kisbett
reading aS follows: —
"If you can obtain, mail at once letter from Edison to
Geo. W. Cook, requesting his assistance in getting President Porfirio
Diaz to make a few speeches. Believe we will he successful. Reply
by telegram."
If you can obtain such a latter and will so advise me, I
will immediately telegraph Mr. Nisbett. If you wish to send Mr.
Edison’s letter direct to Mr. Cook, kindly address same t9 Geo. V;
Cook, h/o Mosler Bowen & Cook, Apartado 658, Mexico D. P. , Mexico.
LVR
Yquts very truly,
r Manager Foreign Department.
. tjp/i-vw
Walter Stevens, Esq,
Manager foreign Department,
New York.
Dear Sir:
Regarding the telegram from Mr. Nishctt, I hand you
herewith three letters from Mr. Edison, one to Mr. Cook,, the other
to President Diaz and a third to Mrs. Diaz. Mr. Ed i s on t tells me
that he met Mr. Diaz in New York in the early days and that they
formed quite a pleasant friendship, so that he thinks it would he
the wisest course to present the letter to Mrs. Diaz. It occurs
to me, however, that lira. Diaz may not he alive or the President
may have married again, so that Mr. Cook might prefer to present
the letter to the President. In case, however, he thinks the
letter to Mr. Cook will answer the purpose, I am willing to leave
the matter to his judgment.
Yours very truly,
PID/l WW
Enc-
President .
[ATTACHMENT!
July
1909.
George V/. Cook, "Esq.,
Mexico City,
Mexioo .
My dear Sir:
It has occurred to me that a number of phonograph
records of President Diaz would be very acceptable to the Mexican
people and hardless lesB so to our own citizens, who so wannly
admire his high character and distinguished services. I will be
much obliged if you will put this matter, if possible, before the
President and endeavor to obtain his consent. President Saft has
made twelve records for us and Mr. Bryan a similar number . If
President Diaz will agree to make the reoordB, advise me and I
will see that arrangements are made to obtain them under the best
possible conditions. I recall the visit of President Diaz to
this country with a great deal of pleasure because I then had the
opportunity of appreciating his high qualities. Kindly express
to him my be3t wishes for his health and prosperity, and believe
me,
^fours very truly,
[ATTACHMENT]
July 8, 1909.
My dear Mr. President :
Recalling the pleasure of ray acquaintance
with you in the early days of the electric light in Hew York, I
wish to obtain, if possible, one or more phonographic records in
Spanish of any matter that you may select, each preferably not
over two minutes in length. These records I am sure would be very
eagerly reoeived by your fellow citizens, and I have no doubt that
they would orcate much interest in the United States, where your
high character and distinguished services are bo generally admired.
Both President. Taft and Hr. William J. Bryan have aadh made twelve
records for us whioh have been very favorably reoeived by the
publlo. If you would signify your willingness to oblige me, I
will immediately take steps to have the records made in the beBt
manner possible at any time and place that you may select.
Aocopt, Hr. President, my best wishes for your health and
prosperity, and believe me,
Very respeotfully yourB,
Hon. Porfirio Diaz,
Mexico.
[ATTACHMENT!
July 8, 1909.
My dear Mrs, Diaz:
Can I enlist your support in obtaining from
your distinguished husband one or more phonographic records in
Spanish, on any subjects that he may Boleot, each preferably not
over two minutes in length? I am sure that to the citizens of
Mexico a phonograph message from President Diaz would be received
with the respect and affection that his distinguished services
warrant, while unto our own people these records would be of
great interest, because the President is regarded as one of the
greatest men that this continent has produced. I think the
President need have no fear as to the dignified way iri which the
records would be put before the public, because President Taft
and Hr. Bryan have each made twelve records for us that have been
very enthusiastically received by the .American people.
Please accept, my dear Mrs.. Diaz, my sincere good wishes
for your health and happiness, and believe me,
Yours very truly,
Mrs. Porfirio Diaz,
Mexico.
July 14, 1909.
Frank D. Dyer, Esq.,
C/o national Phonograph Co., Ltd.,
V/illesden Junction, London.
Deal’ Hr. Dyer:
Due to tlie absence on his vacation of the nan
who sends up the information for the v/eekly report, I was not
able to give you the figures for last w eek yesterday so that they
would go out on to-day’s steamer, hut I give them herewith.
PHONOGRAPHS Combination Regular Total
Domestic shipments 1239 129 1368
Foreign shipments 5. 28 1 129
Unfilled orders • 8074 718 8792
Orders received 2681 70 2751
V/e received orders for 297 ML reside machines a,:ainst 127
the previous v/eek.
RECORDS Ariberol 2-m.inute Total ■
Domestic shipments 76,359 130,523 206,882
Foreign shipments 12,111 14,933 27,044
Unfilled orders- 256,, S38 317,364 • 574,002
Orders received 143,528 189,147 332,675
ATTACHMENTS
Domestic shipments 2,030
Foreign shipments 166
Unfilled orders 30$"
Orders received, foreign 285
Orders received, domestic 136.
BUSINESS MACHINES
Shipments
Unfilled orders
Orders received
25
54
53
2. 7/14/09.
NATIONAL PHONOGRAPH COMPANY
GK ATTACHMENTS
Foreign shipments 2,000
Domes ti c shipments 80
Unfilled orders 29
foreign orders received
Domestic orders received 40.
PROJECTING KINETOS COPES
Shipments
Unfillod orders
Orders received
• Shipments
Unfilled orders
Orders received
COMPLETE BATTERY CMS _
Shipmen ts
Unfilled orders
Orders received
COMPLETE BATTERY RENEWALS
Shipments 4,109
Unfilled orders 2,280
Orders received 4,183
NUMBHRING MACHINES
Shipments 11
Unfilled orders 28
Orders received '22
PAY" ROLL
3,122
6 ,218
4/914
L. Dyer.
§32,656.55 .
MARK BALANCE
§169,553 . 22.
While the National Company has received within the last few
days about §93,000, we have paid out §89,000 on regular accounts
due July 10th.
The orders reoeivod'for phonographs show an increase of
2179 over the previous week, and this increase is represented
principally by foreign orders for 1400 Standards and 124 Firesides.
3. Vl4/0^&T1ONALPHONOORAPHOOHPANY l'1. X,. Dyer.
As this report is for the week ending July 10th, there will
doubtless he large orders received for advance records the week
ending July 17th, although perhaps not so many as for the week
ending the 10th.
The 50 Projecting machines ordered were all taken by Pels or
on his trip.
ffilsi orders show a decrease of about 30,000 feet over lest
v;e ok.
Orders for batteries show an increase of nearly 2,000 and
for renewals^ an increase of about 1,000.
hr. Wilson suggested that I send you the magazines or clip¬
pings from them regarding the Convention at Atlantic City, and I
therefore enclose several herewith* I will also mail you a copy
of the Talking Machine World, which should bo received tomorrow.
I also enclose copy of minutes taken at meeting of Sales
■Managers, which outlines natters 'Olrsady discussed.
TJvcrything is going along all right hero. X will take care
of the ttontolair Bank matter on the 20th, and I go on my vacation
the 24th.
With best regards -to you and Mrs. Dyer as well as the boys,
I am,
Yours very truly,
"Enc-
RECORDING DEPARTMENT.
NATIONAL PHONOGRAPH CO. LTD. pHE0“^°
EDISON PHONOGRAPHS & RECORDS. pHeS
25. CLERKENWELL ROAD. Battery F
August lOtli, 1900 .
. flu /vf..
Thomas A . Edison, Esq . ,
Orange, 'lev.' Jersey,
”y clear lix Edison,
■t* f find that conditions here in the phonograph business
are good, $nd that the sales for June and July were the best in each case,
with a single exception, that the British Company has had; although, of
course, the Fireside machines and the new C-em attachment have been import¬
ant factors. The business is clone very largely by dealers, who make a
specialty of bicycles, cameras, and sporting goods in Cummer and phonographs
in Winter, and in consequence many stores which I have visited have made
rather poor exhibits of our goods, but the proprietors tell me, in ever -r
case, that when Winter comes on conditions will be reversed, and the bicycles
will be placed in the background. it is quite natural to expect that the
sale of our goods should be poor in Summer, because the British people spend
as much time out of cloors as possible, and the^iise the phonograph for enter¬
tainment during the long Winter evenings. Even the stores which handle
■talking machines exclusively do a poor business in Summer, and several of the-
Factors nave expressed surprise that these stores have been able to pull
througn during the' dull times. Undoubtedly, we are doing 90/' of the cylin¬
der business in this country; in fact, all of the cylinder lines are now-
N. P. Co., Ltd.
ip ^ t;> _ .t _ August 10th, ’09.
The artists themselves have left London for the most part and arc now on
the Continent, but I expect to accomplish more in Paris and Berlin.
The Film business is not at all satisfactory, since competition
here is very keen, and the maximum price obtained is only eight cents per
foot. Pictures that are successful in America may be absolute failures
here, because the English people like very much simpler and more obvious
plots, and they refuse to appreciate our sense of humour. Such a thing
as a standing order would b9 absolutely impossible, since the rental
houses have a pick of thirty or more reels per week, out of which they do
not select more than twelve. The manufacturers take their reels around
to these renters and exhibit them and then get orders if they can. 1
believe the American manufacturers could never regard this country as a
satisfactory field except as a dumping ground, and even then the conditions
are very unfavourable, owing to the special character of the business.
Perhaps if the American manufacturers combined together to exploit the
European field through a single distributor they might do better, but this
is a scheme I will look more fully into and discuss with you when 1 got back
The Copyright Committee of the Board of Trade has been sitting here
for several months, and there can be no doubt but that they will recommend
a change in the law to cover phonograph records. 1 appeared before the
Committee last week for examination, and urged that something should be done
as in America, to prevent monopolisation, and maintained that the Royalty
should not exceed one farthing per record.
In reference to Hr. Harks, I have straightened out the matter of
his accounts and have arranged to get hold of the deposit which was put up
to guarantee our rent here, amounting to about H S, 000. All of our
N. P. Co., Ltd.
NATIONAL PHONOGF
Aug. 11, 190
Frank p, By or, 138 q. ,
c/o National Phonograph Co., Ltd.,
V/illosdon Junction, London.
Boar Hr. By or:
I give you ho low condition of the business for
week ending August 7th:
P.i£OiiOGHAHIS Combination Regular
Rouen t i r. shipments 1118 123
Foreign shipments - 909 5
Unfilled orders 6882 982
Orders received 984 602
RECORDS _ Amber ol
Domestic shipments . 78,099
Foreign shipments 17,517
Unfilled orders 287,953
Orders received (>4,219
AT TACiSRvTTS
2 -minute
148,511
13,196
266,176
137,771
Foreign shipments 2023
Domestic shipments 181
Unfilled orders 308
Orders received (Fomeighc) 2172
Domestic ordei-3 received 134 ‘
BUSINESS PHONOGRAPHS
Sliipments 100
Unfilled orders 35
Orders received 90
ffEH ATTACHIfEUTS
Foreign shipments 2003
Domestic shipments 81
Unfilled orders 33
Orders received (Foreign) 2001
Domestic orders received 61
Total
1304
914
1588
Total
226,010
56 , 715
554,129
2 . 8/ll/09. prank D. Dyer .
NATIONAL PHONOGRAPH COMPANY * ''
PROJECTrUG ICTH. '.TO SCOPES
Shipments
Unfilled orders
Orders received
PILM
Shipments -
Unfilled orders
Orders received
complete battery ems
Shipment 3
Unfilled orders
Orders received
COMPLETE REiHaV/AXS
Shipments
Unfilled orders
Orders received
MlglBT-yjifO .VAn;n?r;g
Shipments
Unfilled orders
Orders received ■
PAY-ROLL
§.’51,794.61
BANK DALAUCE
§144,153.99.
I Just called ip Harry Hiller to sec whether he hid anything
interesting to tell you, and he told mo the following :
The price of cement has increase 10 cents por horroll and
the shipments are tecping up.
’7 a shipped 321 cells of Storage Battery up to the present
time this month.
Lansdon*s husineso i3 a little Better. Hillikon has left
them on account of Ilia health and has gone out to California. They
have advanced the book-keeper (Ereeman) , end Dans den and Harry
taller are signing checks.
5
12
4
147,058
2,400
129,608
3,737
10 , 080
2,351
3, 349
2,340
1,484
47
52
70
a 8/ii/09&tionalphonogbaphoompany prank L. Dyer.
:.lr, Edison- continues well and Tom Jr. is improving slowly
but is still in the Sanitarium.
Although I arranged for copies of the minutes of the mootings
of tho Tfcce outline Committee to bo seat to you, I am. not sure that
this was uono v/hile I was away on my vacation so I am enclosing
copies fol 6ho past two weeks and . id 11 also cncloso a copy of the
minutes for to-day.
ur.’P. Gordon Dunne, of Dome, lias sent to you for iirs. Dyer
a necklace of Homan pearls., Without the clasp, Vttch will bo 2ir.ld
in t.ho safe until you return. I have acknowledged receipt of
this to Jilin. Ho also sent one to 3'ro. Edison.
V/ith host regards, I remain,.
TELEPHONE 277-89
tloaCI £di^<rru
x>m^apni£/ djxz/icatiie' Qtv^l/iorwgrcyde/
•EDISON-
Entree des Merchandises
3, Rue des Messaoeries
42 , Rue de Paradis , 42
Qzri^ & August . I3tll . 1909. . '/<? .
SliOlflfta A. KHIOOH, Hfsti. ,
OP.AHGK (H.J. ) U.S.A.
My dear Mi*. Hdison,
I have returned from a trip of several days at Oauterots,
in the Pyrenees , where I have been negotiating with Slesak, of whom
everyone speaks most highly as a oojaing tenor. da has been engaged
by the Metropolitan Opara Company and jaateaa his first appearance
in Hew York in November or later, but will mako a tour of (six weeks
through the principal American cities. Of course he may not be
very successful but he stands very high in Oermany and was well
received in London. Although an Austrian by birth, he sings in
both Italian and French and his repertoire .includes all of the great
German, Italian and French operas. He is «:5 years old, weighs
350 pounds, is 6 feet 6 inches in height, good looking, has a fine
voice and should make a great furor in America. He also has a
strictly non-Buropoan habit of getting up at 7 o'clock in the morning
and he possesses a well-developed sense of humour.
At the present time he is under a 10 years' contrat with the
Gramophone Company, dating 1906 at Mm time when he was not Well-
known, and afterwards , last year, he received 53000 crowns, or
l U^lj
GuiUMpnic £b/wnm}raf>/ui ('Jt\\yorv F -K-
T. A. BDIBOH. ■jiao..
to us and concerning which I v/tu tell yon privately.
!31o55ak soeias to feel that the Gramophone Oo. yjLll not meet
thio offer and ho is plainly anxious to associate himself to us.
At any rate ho will communicate the of -’or immediately to tho ommo-
Phono People and they >n.u have » weaho to decide whether or not
they wi.u ; ,aoet un. If they do not ideet tho offer, vra will then
have tho exclusive sear/ ices of a man "/ho has ovory ohanoe of being
a great success. But if they do uoot the offer, it win show
them how foolish it is for the ?, Coi.rpaniou to ooj.poie along the
linerj of .great opera talent. ft ’'ill also show the artist that
are in the field for his talent and he will hesitate before
Waking exclusive contracts with the Gramophone Oompany.
In a day or two t ’-'ill ’trite you more fully an to what I find
to bo the situation in Prance.
Yours verv tm.lv,
er^c^i 77. /^7r_r^r
Fhti-fw
[CA. SEPTEMBER 1909 (PHOTOCOPY)]
/A V f •
' A'iy?
(\\y/ ■ ) h*
\ \// :.fy. Dyer said: "I left .for London on July 10th, joining my
family there, and spoilt about two weeks on a motor trip through
the West and South of England. During the. month of August and up
to the t.ime of calling for Home on September 3rd I devoted a good
deal of attention to business matters. The outlook for business '
in the phonograph lino for the coming Pall is vory enco.nraging
oo far as; the Continent of Europe in concerned, while in Great
'Britain I anticipate a vary brisk return to normal conditions,
and in fact, I think our business for the coming Pall will bo
exceptionally good. Business in all lines is gradually returning
to normal and the phonograph business in Pur op c is no exception.
Vo have boon gradually extending, our moving picture business in
■Europe so that it has now reached very respectable proportions.
X find that the European audiences arc vory much interested in
American pi staves, and, notwithstanding the fact that in Europe
there are more than fifty manufacturers of moving picture's, the
fierceness of the resulting competition seems to be almost entirely
restricted to European films. VJhile in London I appeared before
the Copyright Committee of the Board of Trade, Lord Oorrell
Chairman, and containing among its member s Anthony Hope, the novel¬
ist, and Dir Lawrence Alma Taderna, the painter. The recommenda¬
tions of this Commit too will be made to Parliament and probably
Cj&.-iod in a Government Bill, but whether the law will be passed
wit.-, out amendment or passed at all is not entirely certain. From
the cbar-ov.T of the questions asked mo by the Committee, I be¬
lieve the Committee will recommend a Bill substantially like the
new American law, extending the rights of composers to mechanical
musical instruments. The Committee seemed to be impx’oseed with
(2)
the danger of granting absolute rights hocanae of the possibility
of monopoly, and will, X believe, make some recommendation by
which copyrights may bo universally used under some equitable
arrangement .
One of the objects of my trip was to arrange for Grand Opera
talent, and in this ronpeot I was entirely successful.- To my
mind, the most important acquisition was the exclusive contract
that; I was able to melee with. I<eo Slczalc, with whom I spent a
the
couple of days m ft beautiful little town of Cnntcrota in tho
Pyrenees, a few miles from the Spanish border. lir. . SlezcO: has
made a contract with the National Phonograph Company, giving us
his exclusive servioes, and wo will soon be able to put out his
records. I may say that wo will alone be in a position to sell
French arid Italian records of Sleaalc, ao well as records of his
principal roles to be sung by him during his coming American tour.
Personally I found Sieaak to be a most attractive and charming
man . Ho is u tremendously big fellow, being, X should say, 3 in
feet six inches in height and weighing ;iiwo hundred and fifty*£SS3
pounds, thirty-four years old and full of boyish life and enthu¬
siasm. Hi 3 reputation is very great in Europe and I predict that
he will bo an immense success with American audiences.."
NATIONAL PHONOGRAPH CO. LTD.,
EDISON PHONOGRAPHS & RECORDS,
ECDISCOINI WORKS,
Willesden Junction.
c F.Th/N.W.
/ /
F.L. Xh/ar Esq* , / -
The National Phonograph Company,
Orange, New Jersey, U.s. A. ^ QCT.'H ;
Pear Sir,
/r Oot. 9th, 1909.
. -He'jgi8-t«red-
We beg to acknowledge receipt of your cablegram addressed
to Mr. Graf, which we translated "Owe Riebeck about $30,000, overdue
and they are pressing for payment, how much if any can you send him
in order to help us out", and at once answered you by cable reading
"Dyer Impedimos you Psrdissipo Nachtslaap Inflabello another
Muskaj an, Randomly", which you will interpret as "Have sent you
Sept. 29th $25,000: can spare another $15,000."
The cheque we sent you on Sept. 29th will no doubt be in
your possession by now, and as stated in our cable we can spare you
another $15,000 dpring next week. Our September accounts are just
coming in, and it is likely that by the end of this month we can
sand you a further remittance.
Mr. Graf is at present on the Continent, and therefore
cannot reply personally to your cable, but we shall try to get the
outstanding accounts in as quickly as possible and endeavour to
assist you by further remittances.
Chief Accountant.
[ATTACHMENT]
( /dM?)
CABLE I
Graf, London.
Pay immediately Rieheck hills July 15th, 22nd and
25th, total sixty four thousand, six forty-two marks. Hava
notified them this will he done.
10/14/09. Dyer.
Berlin, Oct. 16, 1909.
To explain situation long cablegram necessary. Original
material came from old plant Wansleden. Weekly capacity ten to
15 tons - entire output was always placed at your disposal.
Additional material came from new plart Webau. Weekly capacity
5 tons to 10 tons, opened 1908. Webau coal different from
Wansleden, yielding like that of other manufacturers a sticky
montan wax, a physical property solely depend ng on raw material,
independent of presence or absence of matter insoluble and other
chemical constants. Webau wax purer because coal mined there
on surface contains impurities which necessitate filtering -
otherwise wax would contain 4$ matter insoluble in benzol,
you have complained of, but only recently explained trouble.
Riebeck discovered by chance stickiness in Webau and all other
manufacturers' material, Wansleden excepted!, before you explained,
and has since used 'Wansleden coal in Webau. Have ^hipped
Sept. 30th, Augusta Victoria, 10 tons Wansleden material; Oct.
17th, Bleucher, 30 tons Wansleden and 30 tons Webau material.
Latter 80^ from Wansleden coal. Oct. 21st, 30 tons Wansleden,
30 tons Webau material , all of Wanslden coal. Oct. 31st, 30 tons
Wanna tpfrgwfr Wansleden material. During November, three shipments
each 30 tons, that is, until last of Nov. 250 tons. Prom Dec.
1st/ 15 tons weekly. These shipments depend on option for 500
tons, which I understand you have not yet exercised. Removal of
one extractor from Webau to Wansleden will enable Riebeck to give
from Deb. 15th, 20 to 25 tons weekly, and if you can contract
for additional 1,000 ton, will enlarge Wansleden plant to give
you weekly 30 tons beginning of April. Negotiations are now
opened with other manufacturers, and above figures will enable you
cable additional quantity needed weekly.
Graf i
Oct. 19, 1909.
Mr. Thomas Graf,
Edison Gesellschaft,
Berlin, Germany.
Bear oil reply t0 your cable of the 16th, X have "dust cabled
you as foil ows:
"Replying your cable 16th. We cable Kiobeck Oct. 8th, would
take 500 tons on which had option, and we are now willing to
•olace new contract for additional 1.000 tons, conditional on
with Other manufacturers, will place contract with one furnisnmg
satisfactory 5 ton sample for 500 tons to be shipped 5 tomor
more weekly;, if price as low or nearly so as Riebecks. Vriting
fully."
T am enclosing copy of letter X have just written Hiabeck,
^ T^elieve oS our part covers fully the situation with them,
as outlined in »our cable, and leaves no loop-hole whatever for them
to use as an elcuse for not being able to make shipments as
promised in your cable up to April 1st, and after that supply us
with 30 tons of original quality montan wax weekly.
Regarding your negotiations with other manufacturers relative
to supplying us with montan wax, ray cable above quoted advises
you that if any other manufacturer can furnish us with a fiyeton
samule that proves satisfactory, that is, similar to th_ original
qual ity furnished by Riebeck, aAd if the price they can quote is
as low or nearly so as Riebeck's present price, we will place a
contract for 500 tons, to be shipped in quantities of at least
five tons weekly. I did not quote to you Riebeck's price in
this message, as I assume you have learned from them what it iB,
but in case you have not, would advise that the last contract
placed with them April 14, 1909, called for 500 tons at 50 marxs
per 100 kilos, less 4$ rebate, with an option up to Bee. 31, 1909,
?f 500 additional tons, and in case this option was
us, the rebate on the last 500 tons was to be 6j£ and ^rebate
on the first 500 tons was alBO to be increased to 6/.. This
means that on a new contract for 1,000 e^VcxTkiloB
to place with them, the price should be 50 marks per 100 kilOB,
less 6$ rebate and we should, therefore, if possible, obtain
nearly, if not quite as good a price from any other manufacturer
with whom v/e may place the order for 500 tons, although on account
of the lesser quantity and smaller weekly shipments, it is barely
possible they will ask a trifle more.
You will perhaps think it strange that having advised
Riebeck in my letter, of, which I enclose you copy, that the
amount they can supply us as per your cable advice, will be
sufficient for our requirements, we should require additional
quantities from other sources, and if so, I would say that while
their supply will take care, of our actual requirements, and a
little more, based on our present output of records, we expect the
sale of records to inorease very materially within the next
year, and furthermore we have decided to accumulate a six month's
supply to be kept on hand at all times, to guard against just
such contingencies as we have experienced since the trouble
sprung up with the Riebeck people. Another cause for our desir¬
ing to connect with some other manufacturer is to guard against
any possible catastrophe that might occur with the Riebeck people,
such as a fire in their plant, a Btrike among their help, and
perhaps other things which cannot bo floreseen.
I trust the letter I have sent Riebeck, together with this
one to you, will fully enlighten you as to our position and
requirements, and that Very shortly we will receive advice from
you regarding five ton samples shipped from other manufacturers.
■Whenever a sample is shipped us, please write us fully concerning
same, that is, give if possible, a full analyses of the material,
same as furnished by the Riebeck people, also the price quoted,
when shipments oould begin, &c.
Yours very truly,
Eno-
General Manager,
[ATTACHMENT]
0 Oct. 19, 1909,
A. Riebeck'ache Kontan-Y/erke ,
Aktien-Gesellachaft,
Halle a. Saale, Gormany.
Gentlemen:
Wo have. not acknowledged^or confirmed sending of various
cables which have paused between us since my letter of Oct. 5th,
and do not think it necessary to do so at this time, as we believe
they have been thoroughly understood by both of us, and if not,
a long cable which we received yesterday from our Hr. Graf, con¬
tents of which you are doubtless familiar, fully explains the
present situation, enlightens as to vdiat you can do in the way
of future shipments, and v<hat we lave go to do, in order to have
future shipments increased in quantity, therefore, his cablegram
is tho one which wo will take up in thiB letter. This oablo states:
"Have shipped Sept. 30th, Augusta Victoria, 10 tons YVansloden
material; Oct. 17th, Bleueher, 30 tons of \7ansleden and 30 tons
Y/ebau material. Latter 80£' from V/ansleden coal. Oct. 21st,
30 tons V/ansleden, 30 tonB Webau material, all of Y/ansleden coal.
Oct. 31st, 30 tons Y/ansleden material. During November, three
shipments each 30 tons, that is, until la3t of November 250 tons.
Prom Dec. 1st, 15 tons weekly. These shipments depend on option
for 500 tons, which 1 understand you have not yet exercised.
Removal of one extractor from 7/ebau to V/ansleden will enable Rie-
beck to give from Peb. 15th, 20 to 25 tons weekly, and if you can
contract for additional 1,000 tons, will enlarge V/ansleden plant
to give you, weekly 30 tons beginning of April."
If you make shipments conforming to these quantities and
dates, the 250 tons which you will ship by the last of October
will, by our mixing in the poor material v/e have in stock, tide
us over, and if from Dec. 1st to Peb. 15th, you can give us 15
tons weekly, and thereafter, up to the beginning of April, 20 to
25 tons weekly, we will, unless business increases very materially,
be able to got along, and after April 1st, if you can give us
30 tons weekly, all of tho original quality of material, we now
believe we will receive enough to take care of our requirements.
If, however, you can in any v/ay possible increase the shipments
of good material over and above the 15 tons promised from Dec.
1st on, we most urgently request you to do so.
Regarding the 500 tons on which we have an option until
Dec. 31st, we cabled you under date of Oct. 8th, that we would
take this, and you may, therefore, make arrangements for your
output accordingly.
[ATTACHMENT!
NATIONAL WOORAPH COMPANY
Ab to a new contract for 1,000 tons, which Mr. Graf referB
to in his coble , and which if placed will enable you to enlarge
your Vansleden plant sufficiently to give us 30 tons of original
quality material weekly, we are perfectly willing to place a new
contract for this additional quantity, provided price remains
same as on present contract, and quality is guaranteed us to he
the same an originally furnished,' shipments to begin at the ex¬
piration of the present contract and to continue weekly at the
rate of not less than 30 tons per week. If you will make up
and -forward to us a new contract, based on these prices, terms
and conditions, we will be only too glad to execute same and
return to you innediately.
You may accept this letter as our acceptance of contract
for the 500 tons additional, on vftiich we had option until Dec.
31st. terms, prices and conditions governing which are fully-
covered in original contract covering 500 tons dated April 14,
1909 "if the promises of shipment given in Mr. Graf's cable are
lived up to by you, we believe v/e can now see our way out of a
very serious predicament which has threatened us for - the past
three months, but should there be any failure on your part to
msVp shipments, as stated in his message, we would again be com¬
pelled to face the same terrible experience we have been going
through, therefore , trust you will see that no slip-up is allowed
to take place.
Kindly acknowledge receipt of this letter at once, advising
us fully on each and every point brought up, and particularly
in regard to shipments being made in accordance with advice
in Mr. Graf's cable.
Yours very truly,
General Manager.
FOREIGN DEPARTMENT
NATIONAL PHONOGRAPH CD.
EDISON MANUFACTURING CD.
BATES MANUFACTURING CD.
Ur. Frank L. Iyer, Presi don’t,
national Phonograph ,0o..
Orange, N. J.
Pear Sirs
10 Fifth Avenue.
NEW YORK, N.Y.
ryl^W^4.^9M
f/
October 20, 1909.
V
Voiy soon after you sailed for Europe, llr. H. P. Killer asked me to present
to llr. Edison my Annual Report addressed to you, and answer any questions he might ask
regarding seme. I followed Hr. Killer’s instructions, and in going over the report
with Kr. Edison, the matter of General Expense: of the Foreign Department, i.o., aside
from the Australian, Hexioan and Argentine Offioes, was taken up. I explained to Kr.
Edison that it had been ny custom to ohargo all general expenses as incurred in handl¬
ing the foreign business , which included business done'with our Australian, Hexioan
and Argentine Offices, to the Foreign Department.. This naturally makes a very bad
shaving for the Foreign Department proper. He suggested that this general expense
should be divided, and a percentage of same be charged baok to the several branch
offioes. By so doing, it would actually show just what profits the Foreign Department
were making on miscellaneous business, exclusive of the Hexioan, Australian and Argen¬
tine branches. If this percentage of expense was chargod pro rata to the different
offices, he seemed to think that an adjustment should bo made regarding the general
expense of the National Phonograph Company, Whioh is now added to the factory cost of
all material supplied to us.. As it now standB, it is necessary for our branch offioes
to pay their share of the general expense of the National Phonograph Company,- their
share of our general expense, and added to this, their own general expense.
NATIONAL PHONOGRAPH COMPANY
FOREIGN DEPARTMENT
ITo-.vv/ith regard to the national Company's expense, I will enumerate some of
the items a share of whioh we are called upon to bears -
FTiSIGHT, IHSUHANCE, ETC. This item represents all expenses incurred by the factory in
delivering domes tio freight shipments, and v/e enjoy no -benefits therefrom, as all goods
sold to the Foreign Pepartment are f.o.b. Orange, no freight allowance being made.
AEVETOISIKG. You expend enorm.ous sums eaoh year in domestic advertising, but we re¬
ceive no benefit from this expenditure, as all advertising done by the Foreign pspsrt-
ment is changeable to our aocount. The some also applies to printing and stationery,
traveling expenses and salaries of salesmen, cables, telegrams, oto. I night enumerate
a great many other items of expense from which v/e receive no benefit.
At the time of our oonvorsation, Ur. Edison stated that upon your return from
Europe he would lilto to taka the matter up with you, and I respeotfully submit the abovs
for your kind consideration.
*s/s
Manager, Foreign Eepartmont .
Thomas Edens Osborne,
DEPARTMENTS.--/)’™/' Hitters, Safotie &mr(iig Soaj>, Edison Eiomgrafh, Gramot/m
&*#»**»■ n'“‘ "•* *m "fiords for these Instruments in the North of Ireland
' nr.
U/o ,ic
4 Donegall Square West mm , an,
Belfast
Edison, Esq . ,
3a:,&» National Phonograph Uo .
, id* Avenue , Orange ,
’0
..Mr ?d . jjpTpsrj':.'.:! 9 '*o 9
r iV
’ Phono,;
~J oA- CCj b^^tsodS' &£L*Pc.
ujuu *~Jr Lfcrrr S
writing yo* as. one -’ho h&S ton praoiicallyX
" . . ‘ J" * W^o-Ph :• ’oduots in this country , the first ^
I y'urchasod for s,,o having bool^ring^
(ChicWfWfoT ■!« 3flQ'< ,m,-. 4_„j. . ^ C- tJ-^a*(se*-es£- cr* •*- -/ £. k- dC**«H
nilov, STorki but had to
to this cop
r ^irm in
(Ohio ago) in J89B. The instrument cost ite'seoTOci
J . t;t”n0<i 1,0 /W:ri0f’’ on f-oeount of ray importation ^of^Lt to thisjjopntry
bSln3 an tofrinaoapnt of tho rights enjoyed by a particular <
London whose name 1 for the moment forget. X hate been for ye^s>
factor for the National Phonograph Go., of London and need harfosay i
take a particularly lively interest not only in the Phonograph but in
your own celebrated personality. My special object in writing you to-day
is to enclose a letter received from the Pathological Lecturer of the
queen's College Belfast, Dr. V’. J. Maguire, P.R.G.P., who called with nn
yesterday and indicated the immense advantage which his profession would
have in possessing an instrument capable of recording he abounds, which
can only be studied at present by means of the ordinary Binaural
stethoscope. I do not think I require to add anything to what the Dr.
has said in his letter, his requirements being so clearly and tersely
expressed therein.
bet. :;:7,iyC'9.
Thomas Oraf , fieri, ,
c/o national PKon Sfes^gjarty, Ltd.,
V/iilesden Junction, Londonm I’.O.
Lngl and.
:.!y dear Ur. firuf :»
You. uiil recall that we Lew. a number
o:: trike rule, ting g;e-nern.liy to the matter of reducing
expenses to a minimum, and 1 suggested the T>o»aibiiity
of our nuking rhinr-onte o < r eonrdn and possibly machines,
direct from Orange to your factor;;, thereby saving the
cost of h’indling, unpacking and r .rnokinj }\i Loudon.
You thought that this might he done i.i oo.uo casco, and
I wish, therefore, you 'would give the Mutter considera¬
tion and advise »a just vhat you think of the plan and
how it can be worked out. It doss soem to me that in
case of advance orders for the regular monthly lists, it
ought to be possible for u« to moke oupmntB direct to
your factors.
I bring this matter to your attention because
?.Ir. Edison has again mentioned it to me.
Yours very truly.
PLU/AHK.
President,
V'
"t -
Uotober 26,1909.
Thomas Graf, Esq. ,
c/o national Ihon. Co. ltd.,
Y.'illeuden Junction, London, E.C.
England.
’.fy dear Graf : -
‘.’any thanks for your very int< “resting
letters from Berlin of the 12th and 14th insts. on the
subject of grand opera talent. 'Whenever you msilce a contract
with any urtist, I v.-ish you would send the' contract over
here for filing, together with a translation, retaining one
copy for your own files, in order that wo may keep the
matter straight from this end. I note that you have already
made contracts with Lu^jiu, BiBohoff, Boomer and Y/hitehill.
1 wish to congratulate you, especially in securing Lavia,
and 1 am very pleas'ed with the reasonable arrangements you
have been able to make in the various cases.
Regarding Distinn, can you find out what her
present arrangement is v/ith the Gramophone Company, in order
that v/e might tell how high to bid. Ghe might drop some
hint as to what they have been giving her and what they
would be willing to offer for a further contract. Your work
in connection with grand opera talent has been very satisfac-
+ r.nrt t Vin-np that vou will be as successful in the fu-
#8
Thomas Graf , Ksq.
tore. I reel «»* ®* “ f°°*“°14 ” ’1U
ahlc to mahe noma rapid progress.
, ,,,P have just retained the
'in thin connection, we nave ju
e.rrtoc, rf - .»«*■ *» »* 14 ~ ““tW'
„* no.allly Utar on «* »» « *">•» “ ”hl°“ °"C
,m not largely under your direoUon. So for »« *>“>
not aoeonyUe-ed very - * «** “« ** 4 W ^
rnun for the place.
Yours very truly,
Hay'.'H K.
President,
\
i
m
gif&O--
Ootober 29,1909.
Thomas Graf, Esq. ,
c/o national Phonograph Co. Ltd.,
\Villenden Junction, London, L.c.
England .
Boar Hr. Graf:-
Yours of the 15th inBt. from Berlin
has Been received, and 1 have already wired you to
obtain records of Garah Bernhardt if you can get them,
hut I do not think the other artiBts would he suffi¬
ciently popular o.t leant at the present time, to
warrant the cost.
On the subject of Bonci, I note v/hat you say,
and if you are not able to do anything with him before
he leaves for America, I will have some one Bee him
here and submit your proposition. Of course, the
whole thing hinges on the contract which he has with
the Phonotipia people. The more experience I am hav¬
ing with the grand opera question, the more I am con¬
vinced of the fact that our so-called "friends" are
doing all they can to side-track and embarrass us, and
I am not at all surprised to have you tell me that 7<tr.
HZ Thomas Graf, Esq.
Dixon has nude Bond a very substantial offer, not¬
withstanding the fact that he told us he would have
nothing whatever to do with him.
Bourn very truly.
ELD/ AlUL.
Trooident.
1U,
Kovcmber 1,1909.
Mr. Thomas ®p. Osborne,
4 IJonegall Square West,
Belfast, Ireland.
l!y dear Sir
Your favor of the 82nd ult to Kr. kdison
has been referred to me, together with the accompanying
letter from hr. './. J. Maguire . Mr. iidiaon v/ishea ine to
advise you that while he thinks the suggestion made "by
hr. Maguire in very interesting from a eoiontif io point
of view, he does not believe: that in the present state
of the art it would V- ponfiihle Xu oaticfactorily record
by means of a. phonograph the sounds produced by heart
beats. Dr. Maguire point ■ out that those sounds are of
very low pitch and are extremely faint, and these two
difficulties, in Hr. Kdiaon1 s opinion, would make it
practically impossible to record, then phonograph! dally .
Yours very truly,
FLD/ARK,
President .
NATIONAL PHONO GRAPH CO. LTD., ™*
EDISON PHONOGRAPHS & RECORDS,
EDISON W DRKS, P*R,a
Willesden Junction.
Th.G/Soh.
December 17th 1909
Frank L.Dyer, Esq. President, .^oniiqen^iai^
National Phonograph Company,
Or a n g e , N. J.
Dear Mr. Dyer,
I cannot give you any figures at this date, but I feel
sure that the fiscal year 1909 will close with quite satisfactory
results as far as this company is concerned, and compared with previous
years.
There is, however, one serious matter which requires care¬
ful consideration and prompt action, and that is: the comparatively
small figures of our machine sales, if measured by our sales during
the first 3 years in this country. True, the Fireside machine has
been a very good seller, but on the whole our machine sales are not
what they should be, and there are good reasons why this is so. I
have obtained from one factor exact figures of his machine purchases,
and while there is not a very great difference between his purchases
of disc machines and our machines during 1909, there is a great dif¬
ference if we consider that during previous years his purchases of
our machines have been far and far in excess of the disc machines.
We are at present practically the only people who sell cylinder
machines ; the Columbia Company do not count,- their machines are
not seen anywhere; and the other cylinder machine which has been
popular in this country, the Excelsior phonograph, is disappearing.
P. Co., Ltd.
Frank L.Dyer. Esn:
December ,17 th 1909
The Excelsior factory at Cologne manufacture very few cylinder
machines hat concentrate themselves on disc machines, and what is
offered in this conntry by factor, is it seems only the overstock of
Srcelsior machines that was left on their hand, fro, pr.vi.n.
Against this .e have quite a number of firms all manufacturing a good
number of different models of disc nmohlnes with a range of prices
downward, which cannot be met with in the cylinder line.
Eie danger lie. not so much in the immediate loos of
machine sales but in the fact that if the increase in the sal. of
disc machines continues at the present rate, we shall scon feel a
drop in our record sales, end the situation in future win become
more and more serious, if v/e do not „ „
, ii we do not find a remedy as quick as possible.
I am sending you under separate cover a Turnaphon. catalogue
fro, which you will sec that dealer, are offered disc machine, at
SUCH low
° xx/ 5, approximately jS2tr,
6-, as against our cheapest machine, the Hem, which 1, sold to dealers
+ sfa mui.
’ "w“> "“xi-ii is soxa to deale:
at /8.75. This is only one mate of cheap disc machines, and similar
machines ar. placsd on the market by several man.ufactur.rs, I have
Purchased several cheap machines of other make than the Turn.ph.ne,
which are cheaper than our 0,„, but „f ouch appearance that it would
take a great deal of advertising and p„s„.,i„n to mak, . customer
take a Gem instead of this disc machine. I win 8e„d y,„ these '
Pies so that you can ,e. for yourself the appearance of those machlh.s
and judge for yourself 1„ which direction business is bound to drift
unless we do something to meet the situation.
A remedy I see either in our marketing, in addition to
cylinder rscord, and machines, , disc rscord of our own, ln dosing
N. P. Co., Ltd.
Dec enter 17th 1909
Frank t.Dyer. Esq:
low-priced good cylinder machines as an offset against cheap disc
machines. The moral effect, of course, must he considered. If those
cheap disc machines are distributed, and they are, in large quantities,
the disc purchases, which I think are still in the minority in this
country although they are close up to us, will increase immensely;
dealers will begin to feel the drift of the business and take less
and less interest in the cylinder trade, and moving in the line of
least resistance will stock what has an increased demand, and neglect
that upon which a great amount of labour must be spent in selling.
The situation is more advanced here than it is in America owing to
the patent protection there, but you will soon be confronted with the
same problem when the principal patents on disc machines have run out*
I am today sending you only the one catalogue; but as soon
as the 3 sample machines which I obtained will be shipped you, I will
write you very fully regarding each of them. These machines may
be criticised from a technical point of view, but it cannot be denied
that as far as their appearance goes the advantage is all on their
side, and this goes a good way to promote sales.
With regard to my first suggestion: to add discs to our
present products, I do not know if this has been seriously considered
or if, how far we have already gone. With regard to the second pro¬
position I should be glad if you will have taken this in hand at once
and produce one or two models of cheap machines, if possible, and
by all means preferably machines with a cabinet, and a large
cabinet; if possible, with a variety of cabinets, so as to have some¬
thing to offset the great choice which people have here in disc machines.
N. P. Co.. Ltd.
December X7th 1909
Drank L.Dver. Esn:
— — 3 — -4 -
The business, at least in this country, is worth having and if we
have the means of placing on the market large quantities of machines
through cheapness in price, we will do an increased cylinder business
This will also help us in Continental territories, where the advance
of the disc machine is further progressed than in this country.
I should be very glad to hear from you, at an early date,
of your intentions, for my own personal satisfaction.
xours very truly,
S a— SbJXj^
T
4l.x~
National Phonograph Company Records
Correspondence, Domestic (1910)
This folder contains correspondence and other documents relating to the
commercial exploitation of phonographs in the United States. Most of the items
are letters to and from Frank L. Dyer, president of NPCo. Other correspondents
include Carl H. Wilson, general manager; Leonard C. McChesney, manager of
the Advertising Department; Leo H. Baekeland; Nelson Goodyear; and William
M. Lybrand. Included are letters pertaining to the manufacture, distribution, and
sale of phonographs and records, as well as correspondence about litigation,
patents, and other legal matters. Among the documents for 1910 are letters
concerning the development of a disc record and a diamond reproducing point;
the activities of the T raveling Department, a recently established sales division;
recordings made by polar explorer Ernest H. Shackleton; and competition with
Victor and Columbia. Among the items relating to disc records are letters to and
from Baekeland about the use of Bakelite for the records; and experimental
reports by Edward L. Aiken, who was working with Jonas W. Aylsworth on record
composition, surface wear, and machine tools for record manufacture. There is
also correspondence by Edison pertaining to technical developments, corporate
finances, and various sales schemes, along with several undated memoranda
by Edison at the end of the folder. Some of Dyer’s letters refer to the business
of other Edison companies such as the Edison Storage Battery Co. and the
Edison Portland Cement Co. , as well as the proposed consolidation of Edison’s
interests and the use of the name "Thomas A. Edison, Incorporated."
Approximately 1 0 percent of the documents have been selected, including
samples of daily and weekly sales reports that were routed to Edison. Aiken's
reports to Dyer on record composition have not been selected where selected
letters from Dyer to Edison treat the same matters. Also among the unselected
items is an advertising plan prepared bythe J. Walter Thompson agency that was
never adopted.
9nl;n A. Slimttpmut
35 Stull Slrrrl
Jfnn TJurlt
F. L. Dyer, Esq.
#10 Fifth Avenue,
New York City.
Dear Mr. Dyei':-
January 5th, 1910.
„ _ , iuur 3avox received. I still think we can
" ethics tllat WOuld b® fair a3ld ecluitable and on the
T a: !'I basi® t0 which Y°u have referred in a previous letter,
rarilv LL h Wf!>h “*** ThompBon in some otters and am tempo-
in this matter.*2 ^ Same offlces a3ld am interested as his friend
V,hen younG Tom Bdr.^in^J^
sponded up to several thousand dollars. *
of Mr mi. loaned H?l7'ei' the on the strength
havf T aS preSideUt of the 00niPany and because you
shire the iso 8 representative, taken from him at $3.25 a
shaie the 280 shares 0f Phonograph stock. Mi’. T. needs thi-*
way6!/!! i^lttlr r^0"”8 18 t0 “*** Kdison» not in a33 aggressive
Iuit° t0 be pui'sued in the courts even in a friendly
. ? hava 310 d°uh* that if I could see Mr. Edison
to tlkful he would in his generosity contribute at least $500
him o?thr th,1S 3t°?^ 1 Wam to make this proposition to
him or through you if y0u prefer.
uniust iud«, of +l°\mst excuse Pres latency such as even the
othlr cIlS f hS S°rip1:ure yielded#** as employed in the
othei case case we worked so harmoniously.
I will Dhono un feed oblieed to "continue" the correspondence.
Iully *”d *'"**«• «■» ■»
MEMORANDUM
L,
Two suggestions made this morning by Mr. Edison to he
more fully looked into later.
(1) ■ .Regarding the Purchasing Departments of largo corpora¬
tions, great opportunities are offered for dishonesty and
favoritism, and equal opportunities for ineffective and
uneconomical buying. He proposed the carrying on of & bus¬
iness which would correct and check all purchases, by having
a numbor of corporations pay a yearly retainer, which would
entitle them to have all purchases corroborated and approved.
This might be done through a separate company or through
regular chartered accountants. The business v/ould boar the
same relation to the Purchasing Department tha" the business
of a chartered accountant now bears to the Book-keeping
Department of a corporation. The idea would bo that the
company doing the business should be furnished With samples
and specifications of all supplies and with copies of all
orders over anO above a certain amount, and should make a
separate investigation to determine whether the prices ob¬
tained are reasonable. If a business of this sort could be
developed, manufacturers of raw material would no doubt
co-operate to oarry it into effect by furnishing their own
prices, becavise it would bo to thoir interest to have pur¬
chasing conducted along honost lines. Take this up with
lybrand or possibly Harry Mingle to see if anything can be
worked out of it.
(2) The idea of trying to get moving pictures intro¬
duced into higher social circles by soliciting subscriptions
for a continuous moving picture exhibition which could be
(2)
carried on in a club hall. For instance, if one thousand
people in Montclair would subscribe 50 cents a week, a very
good moving picture show could be given at the Montclair Clair
Club hall throe times a week and peoplo could drop in at any
time they wantod to. Take this up with Kirk Brown and sug¬
gest to him that a committee might bo formed to go over to
the laboratory to see the kind of pictures tlio manufacturers
are now putting out.
1/13/10.
F. 1. D.
[ATTACHMENT]
[ATTACHMENT]
NATIONAL PHONOGRAPH COMPANY'^* ‘ ' ^^4.
in mattoro of this nort- ' V thont oposfcinG for ourso’vos in nay
troy, there coonc to ho a very Croat opportunity on tho part of
uurchacinG Dopartnontc to mafco nictalsoa in tho purohnoo of cup-plica
and not to $o in tho ohcapoct narlncts, and a firm or company nrT:-
1HG a cpocialty of this v;or3r miGht ho hip to cavo rainy tines tho
cost of tho annual corvico to tho corporation.
;.ty ourposc in vffitinc you to-day roenrdinG this natter
i.c not necessarily to asl: you to tai:c it Up for us hut merely to
Get your opinion >.r to its practicahility so that I c n diocm-s it
uith r.ir. Edison should lie : j £ .fee sucyestion to no £ in. I
will ho very much ohli&od if you will yivo tho natter your c;. re¬
fill connidoration and a.dvisc nfc’- of your opinion on the sane.
"ours very truly,
r:,i)/iv;v; 'rosidont.
HUTCHINSON BROS. & OO. /
SANITARY GROCERY ^
yi-v^r 5 -yyittcy^trlr
y^JU^ .^24-^0 y^cAz~^y^JU
Jx^^UL, yiyf/t4ryCC^- RM^eiCt ZO^i “t/ tjMatsf /^LzjtaIA^ ~Xfr-a-4
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(lery^y^uty aXj yL-4 y^l/do CUsy^-Jk^i -^ZZyr^AJ
HUTCHINSON BROS. & CO.
SANITARY GROCERY
PROMPTNESS CLEANLINESS POLITIC AT1EN1IO
HUTCHINSON BROS. <& CO.
SANITARY GROCERY
ITANGY AND STAPLE GROCERIES. HAY AND GRAIN. ERESH VEGETABLES AND FRUIT.
POULTRY. BUTTER, EGGS, CHEESE.
PROMPTNESS OLEANLINESS POLITE ATTENTION JUST TREATMENT
HUTCHINSON BROS. <& CO.
SANITARY GROCERY
FANCY AND STAPLE GROCERIES. HAY AND GRAIN. FRESH VEGETABLES AND FRUIT.
POULTRY, BUTTER, EGGS. CHEESE.
PROMPTNESS OMANLINISSS POLITE ATTENTION JUST TREATMENT
e/t vix fi&e. S/'/it.',.
s\d-< LpL^JL*~adac
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Ci^^u^-^jLcJvUl- CL* <Lt^*JLd^
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HUTCHINSON BROS. <& CO.
SANITARY GROCERY
T> STAPLE GROCERIES. HAY AND GRAIN, FRESH VEGETABLES AND ERUTJ
fleee/Si onu r'/’/c,
h .f X^\J-cAc<ruJ
/ P. (a CIAjC^—o—
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<0. ^-(AjC3~co^-J^ q&a Cv ~/£,^
Or \AJ- 3 '^-ioy^Jyt^A ioilArC ^ Lr^~ -yvo^-fJi.
"to '"t^jiXoY irvA - (TAlrj- cl^reu^— AYj/2-L<yf /^L(aju ~fcz
/Uoy^^
^zACDl^LA* A^J-
pi-"
Jan. 20,
1910.
Mr. 17. c. Hntohlnaon,
Corner Forest ,'c Charles Sts.,
Jacksonville, pia.
My dear Sir;
Your letter to Mr. Edison has been personally
roforrod to no, with the request that. I look into tho
various natters that you complain of. We are always glad
to receive the benefit of straightforv arfi criticism, and
to profit by it whenever possible.
I agree v.ith you absolutely that all records
should leave our Factory in a perfect condition, and v:e
make every effort to bring this result about by having tho
records inspected during their entire manufacture. More¬
over, v/henover a dealer reports to us the rocoipt of a de¬
fective record, v;e always make it good. Regarding tho rough¬
ness that you have encountered in some records, this is a
defect which sometimes occurs, by reason of the quality of
the matoriul which we are required to use.
Yotu- suggestion that records should be placed
in scaled packages, and tho seals not be broken until
actually purchased, is one that wo have frequently considered.
Page 2,
Mr. H. c. Hutchinson,
Jan. 20, 1910.
hiit wo hollo va it could not he possibly oarriod out.
Aa you say.lt would then booomo necessary for every doal-
er to carry in stock a lino of samplos, which ho could
play to his customers, Sinco wo issue 40 different records
each month, and have ovor 10,000 dealers on our list, you
will ooo that this would require ovor 400,000 records each
month for samples alone. Unless the doalor had samplos,
it v.ould ho impossible to sell n record after the soal had
become broken, and a oustomor would naturally decline to
bi;y u record until ho had heard it.
What you say regarding tho handling of records
in dealers' stores by people who hang around tit© place, is
a difficulty that has not heretofore boon brought to my
attention, but obviously it is a matter for the dealer himself
to correct. He must see that if he permits his. friends to
handle his stock, he cannot make as much of a success of the
business, as if the stock is absolutely unused. Possibly the
records you complain of may be of this character, and may
have boon played ovor and ovor again by the dealer before you
purchased them. At any rate, 1 am sending you by express tho
7 records you refer to, which 1 will ask you to accept with
my compliments, and I hopo you will find those bottor than the
Page 3,
Ur. II, c. Hutchinson,
Jan. 30, 1910.
onoo yo;i have.
Thanking you for your suggestions and
critic isms, and assuring you that it is all accepted
in the boot spirit, boliovo mo,
Tours very truly,
President.
PLD/MII
......
MEMORANDUM
1/20/10.
Ivlr. V/alkor;
In tills letter from IT. 0. Hutchinson of Jackson¬
ville, you see he refers to 7 records. I wish you v.-ould
look up those records end heve Ur, Youmons send them to him,
FIX'/luK
MEMORANDUM
1/20/10.
7 -the following rooordc to
. Hutchinson,
Hutchinson Bros. Co.,
Pol'OSt OhflVloS 21*0. .
Jaclraonvillc , :
106
65
126
170
Shoco tiro to rcyl.co ilofootivc rooords ■ nu. should go
ohr.rgo , in aocordcmoo with lottor written M& to-day.
Hooting of Jan. IS, 19X0, tho possibility you re for to was suite fully
aiscussod. !Bhe proposition applies to only two or three salesmen
at tho most, because this particular difficulty has only boon enouunted
in tho northwest. ITo doalor would havo more than two or throe or
possibly a half dozen of those pitted records, and we felt that it would
be a hardship on the dealer to require him to return such a few records
to the jobber and pay express charges thereon. If a salesman calls
on a doalor and finds that tho doalor has two or three pitted records,
the proposition was to permit the salesman to give the doaler a credit
-2-
momorandum entitling him to an equivalent number of records ordered
from the jobber. later on when the dealer returns his records under
tho Exchange Proposition these pitted records could also be returned
so that the Jobber would be able to check up the transaction. In
this respect the minutes as written out are not quite as we agreed
upon at the meeting.
The final idea a3 I recall it was not to permit the
salesmen to break up the pitted records, but to simply allow him to
give the dealer a credit and require the dealer later on to return
the pitted records to the Jobber with his other records under the
Exchange Proposition, so that the whole transaction would be known
both to the Jobber and ourselves.
By permitting the salesman to do this, a dealer having
a number of pitted records in his stock could got new records to
replace them without going to the trouble and expense of returning
the pitted records to the jobber and without having to wait until
his other records wore returned under our Exchange Proposition.
MEMORANDUM
:l2s€:.
H. ?. I. •! 11 or: l/5l/l0.
Hr. Byor haa inotructcd mo to return to you
all the oorroapondonoo in roforonoc to tho purohaao of the
Edicon Phonograph V/orka atock from tho International Graphophono
Co., conaiating of oorroapondonoo v/ith 1'ranoia Pitch, Ilorbort
Barry and Ilohort H. He Cart or. V/ith this oorroapondonoo ia
a lottor rocoivod from Eohort H. MoCartor Saturday morning
v/ith copy of letter from Caldv/oll f3 Hood to him aa to proper
title to thia at 00k.
Enc-
- • W. T/alkor.
[ATTACHMENT]
&,r
fA, L L-(,<-rr^
!<&0$
( 7- *
*■ r . ’;=fe
/ ■ r
•( — T-*<- k-cC <r(
III L-^ <■ ■— '
’A-
. .CL't. t
(.<4-^ !>
X
7
J
i
. . , , CL
TIC,- L vy- [.
M03
iT. G-*
^ rT
[ATTACHMENT]
Newark, N. J. December 30, 1903.
'Mr. Vf. E. Gilmore,
Edison Phonograph Works,
Orange, N. J.
Dear Sir:
Yours of the 29th instant with enolosi!
national Graphaphone Company at hand. I see no objection to the trans¬
fer of the stock. I have examined the agreement as to the election
of directors, and do not believe it can be enforced. Perhaps it would
be well to take the matter up in a friendly way with these gentlemen,
and Bee whether persons agreeable to Mr. Edison cannot be suggested to
take the vacant places in your Board of Directors. What do you think
of this suggestion?
Yours truly,_ ..
"7
V., Fo-b. 5, 1910..
Feb. 8, 1910.
Subject: Bakelite.
Mr. Frank b. Dyer, Pres.,
■National Phonograph Co.,
Orange, N. J.
Dear Sir:-
I shall be very glad to meet you at some future time.
The main reason why I would ask you to post-pone this subject,
is that I am putting the finishing touches on my experiments
relative to the utilization of Bakelite for phonographis records.
After I feel sure that l have gone as far as is desirable in my
experiments, 1 shall let you know.
Mr. Frank L. Dyer, President,
Nations 1 Phonograph Co.,
Orange , IT . J .
My dear Mr. Dyer:
. you no doubt have seen the recent articles -
especially that in the "Hew- Y°rk American" of Sunday,
January 30th -
"Phonographic fad on the wane - makers cannot
pay dividends"
all referring to Mr. Edison's recent purchase of
Talking Machine stock.
It strikes us that if you have not already
decided to do so, that it would be very advisable
for you to put out an article to undo the damage which
such articles may do the Talking Machine industry, for,
going undisputed, it cannot help but have a damaging
effect upon the minds of the trade as well as to ground
the opinion of those of the public who have had the
"fad" idea of the Phonograph.
Hope you will not consider me too
presumptuous.
Yours very respectfully,
VICTOR TALKING- MACHINE CO-,
IPG /EH
General Manager.
Feb. 4, 1910,
Ur. Louis F. Oeissler, Oonoral Manager,
Victor Walking Machine Co.,
Cam cion, II. J.
My dear Mr. Coins lor:
Your i'avor of the 3rd inot. has boon
roeoivod. When tho artioloo to which yon refer wore pub¬
lished I made roplios to then, which I think will straighten
out the' situation. Who trade Papers also have boon furnished •
with statements fully euplainirg the matter. You understand,
of courso, that in buying a minority stock intorest that
was more or los's hostile, and confronted as J. was with the
practical impossibility of showing them our books, that I had
to do moro or loss talking along these linos.
If I had not done so, we would not have
been able to buy the stock at any price, and would have beon
subjected to annoying and harassing law suits. I am very glad
to have you write me about this matter, but 1 think it has
been taken care of.
Yours very truly.
President.
FID: Mil
/4w
Fob. 4,
1910.
®r* 1. K. Baekeland,
Yonkers, K. Y.
Dear Sir:
Your favor of the 3rd. lust, has boon roceivod.
I v/iii bo very ranch interested in hearing how yonr experiments
turn out. and wo will expect to hear frora yon in dne course,
m order that wo may have a oonforonco. % principal
anxiety in Getting in tonch with yon was to try to make some
arrangement with yon if poesiblo before going to any other
talking machine concern. 1 imagine from yonr letter that yon
hove not as yet taken np this matter with any other Phonograph
Company, and I hopo yon will not do so nntil wo have had
the opportunity of talking it over.
Your3 very truly.
President.
FLD/lvOl
NATIONAL PHONOGRAPH CD.
ORANGE, N. J.
EDISON PHONOGRAPHS & RECORDS.
A newspaper item, which has been widely oonied
appeared recently in a number of New York City newsnaoers
regarding the sale of a block of stock of one of the
*■ «>• •o.tr.ll-
T,hif article we believe has been misconstrued,
Prpr.,?rtL+°r$ +?jUr'p t0 the Phonograph industry, and the
President of this company has therefore prepared a state-
cation? ^ W°Uld likS y°U t0 SiTS Space in °onr SSlS-
_ , . thanking you in advance for any courtesy you
extend to this Company, we are,
Yours very truly,
NATIONAL PHONOGRAPH COMPANY,
Manager Advertising Department.
[ATTACHMENT]
STATEMENT BY MR. DYER.
My attention hag been called, to a recent article in a
New York daily newspaper which has been widely copied, and wherein
it stated that the future of the phonograph was not very bright.
This article is entirely misleading and does not accord in any way
with the views of myself or anyone connected with the Edison Companies.
The future of the phonograph was never so bright as at the present
time; in fact I feel that the surface has hardly been scratched.
Orders are coming in so rapidly at the present time that we are not
able to fill them promptly and the sales are entirely satisfactory.
The fact that we are just starting in with the amberola and a full
line of Grand Opera Records is certainly an indication that so far
as we are concerned the future does not have to be questioned. If
any one of us had the slightest doubt as to the future of the
business, why should we be spending hundreds of thousands of dollars
each year in advertising and a corresponding amount in the develop¬
ment of new lines and in experimental work?
In connection with the very article under consideration, it
is interesting to inquire why, if Mr. Edison has any doubt as to the
future of the business, he should be willing to spend $155,000.00 in
cash to acquire a minority stock interest? The whole transaction
was simply this, that in the early days of the phonograph business
this particular minority block of stock of the Edison Phonograph
Works was acquired by outside interest, and was later put up as
collateral to secure the issue of bonds of another independent
company (not controlled by Mr. Edison) having rights in certain
[ATTACHMENT]
(3)
foreign countries, and on which, the interest payments were defaulted.
These bondholders were anxious to realize something from their invest¬
ment and Mr. Edison was willing to buy the stock, so that the irans-
action was consummated.
The Edison Phonograph Y/orks, as persons familiar v/ith the
business know, is a separate company located at Orange and engaged
only in the manufacture of machines, which are turned over to and are
distributed by the national Phonograph Company. The National Company
manufactures all Edison records and sells directly to the trade. The
National Company in assets, property and amount of business done iB
immeasurably larger than Edison Phonograph Works.
The purchase of this block of stock by Mr. Edison was a
personal matter and has no direct bearing on the future of the phono¬
graph business, other than showing his confidence and a desire to
withdraw the stock from litigation.
s/ll/ 10.
2. A. EG icon.
NATIONAL PHONOGRAPH COMPANY
Busnn-is/j phoitoc-ha'us
Shipments
Unfilled orders
Orders received
75
21
G7.
?■ incniii::s & meok/uisms
Ordorc sh.ippod
orders unfilled
Orders received
Orders shipnod
Unfilled ordorc
Orders received
Ordorc shipped
Unfilled orders
Orders receive c:
Orders shipped
Unfilled orders
Orders rocoivod
Orders sh.ippod
Unfillod orders
Orders received
Poroifin
24,135 122,511
7 ,750 1.1,005
10,310 122, 57 C
Edison fiasco
S55
02
1510
401 ' 1516
7G5S 4540
2557 397
ITUI-Lphi-VIliG :IA0UI1P;2
iVisard Bates
16 102
■ 1 29
156,551
20,355
151, GOG
G97
GG07
27 7 G ■
1917
11973
2934
fetal
118
30
154
$41,155.01
UAiFK HAIlUICjj
$'04,675-27.
Hoforrinc to the falling off in film orders, this is aocoxmtod
for hy tho canoollation of foroign standing orders and no foreign ro-
s/n/ic*
NATIONAL PHONOGRAPH COMPA
poat orders, 'because films are now being printed by tho Grvunont
in Verio for our foroign custonoro. Domestic orders h vc not
off, but have incroaood, as the total sold for tlio rook ending
20t3i ran 140 rools, and the total for tlso wool: ending fobruory
was 144 roolo, shoring an increase of four reels. Our foroign
3iavc boon riur.ring Iron 36,000 to £30,000 foot por wools:.
ITO
JJCOplO
fallen
January
6th
orders
i’S very
vy
Peter Eacigalupi & Sons,
941 Farkct Street,
San Francisco, Ceil.
Gentlemen:
, Koplying to your several letters of the past few v/eelsa.
?? l0 lJ?eart' poll3ner> Wtilips arid the writer, I regret to
cohalLr^in«f^r^h0 Mfit°areful and deliberate discussion and
quo3tio? "f extending you additional credit,
It Iiae keen decided vro cannot do so. 1 trust you will not con •
oit'+L+tlT+<1<Cl3i?n in !hi? mutter aa arbitrary or narrowminded,
ia aot ou^ desire t0 extend to you every possible favor
wltJl a 3afe and conservative business policy, as ouch
is not the case. You are now, end always have been, allowed a
andTin^nP orodit than any other jobber, where Jonditlons
anci financial responsibility v/ere the sarao#
ati di3a?ter> your credit was limited to j^lB.OOO.and
nil ^ amount v/aB not only satisfactory to you, bu£ wae
figured you would require. Later on it was extended to
to’p^nnn y°U Wef° here last auMmer» it was again increased
Xnn’000* ’ lind?r a?eclal arrangement, whereby the additional
i J° l5® liquidated at the rate of $500. per month, This
itself was a conoasslon never allowed any other
1^000* that tln?/ou felt very sure that with the additional
Yn'^00!* oredit» yau would, in a few months, be able to turn yourself
the 8 ^1 ft nnnayT?°H + ° l50.in P° 3 it ion to keep your account within
+ivnVpSi°°p^ aad a1; the same time obtain sufficient goods to
toko care of your business. The $5,000. you are liouidatinr as
1>Ut Wit^ tlirce months after it m grant ed*you, you were '■
in tte same position as before, and ever since then you have not
S soliciting additional credit, but I honestly believe' have
money in your business by not being able to socure
raerchandlso enough to take care of your trade. X don't mean by
this that, wo have hand! capped you by being compelled to hold un
r°r/?iy ®reat length of time, but that knowing you* had
y?.ur or0dlt, you have not plaood orders for
the quantity of Roods that you should have had#
' I.1 d?nH u nea®3aary to go into this matter in detail,
and^ «ln ?ri80®» J over it very thoroughly with you,
time- you admitted you were not only making no money,
cmnd a°T aveiy monthi a»d that unless a change
could be effected in the way of forming a combination, or you
could obtain additional crodit from us, you would bo far better
off by closing out your business to the best possible advantage.
I told you then- that so far as I could see, additional credit was
out of the question, and now that the proposed combination has
fallen through, so far as you are concerned, I do not see that
there is left for you to do but to try and dispose of your business
to someone who has sufficient capital to carry it on, and I honestly
believe that the sooner this is done, the better it will be for
all concerned.
An oxtra three, five or ton thousand dollars in your business,
which wo night plaoo there in the way of additional credit, or
which you night arrange to borrow, would not, in my opinion, help
you one bit, for the reason that within six months or a year, at
the latest, after receiving this additional crodit or money, you
would again be in the same position that you are now,
J7it.li Pommer and CJir.se out of all consideration, in the me!, tor,
I don't know who to suggest as a possible purchaser of your business,
or as being liable to arrange a combination with you, but wo are
now endeavoring to interest one of two or three different parties
in the way of forming a combination with you, or buying you out,
and believe we will know definitely in the natter >i thin the next
month or six weeks. Possibly one or more of those parties will
approach you, referring to our talks or letters to them for doing
so. Should sucli bo the case, we trust you will not discourage the
idea, but, instead, explain conditions which causes you to desire
to make a change, and place the prospects and possibilities before
thorn in the most favorable manner possible. Should you not be
approehhdd, to would prefer your not taking the matter up with
anyone until you hoar further from us. Our only object in making
this request is, we believe we are p crimp a in a better position
than you are to interest someone.
The elimination of the Kohler £: Cliase interests in our line
should mean that tho business which thoy hod will how bo divided
between the two remaining jobbers. Tills fact should have some
weight in getting someone interested in becoming your successor
or joining issuo with you. • On the other hand, it also means that
in order for you alone to secure any of the K. & 0. business, you
would have to have more goods, and be in better shape to take
cars of your customers, and tliat would mean additional credit,
which cannot be granted.
I don't think there is need of going into tills matter any
further, as v/hen in Prisoo, I explained to you personally just
how wo felt, what the prospects 7?ere of your being able to con¬
tinue alone was from my point of vlow, and tho conferences which
we have hold during the past' two or three weeks, sinmly confirm
tho views I expressed to you at that time; therefore*, in conclu¬
sion X con only add, ub I explained to you personally, that for
the host interests and protection of not only ourselves but for you,
a change is absolutely necessary, and the longer it is put off,
the worse it will be.
Yours very truly,
General Manager,
P.5. Your present account with us is §22,500, of which §3,900. is
notes, leaving u balance on oonoigmiont and regular account of
:'18,£00, and no tluvfc- is 0600. over the limit., ur. Philips wired
you on the 10th inat. that April records were ready f or shipment,
and it v/ould ho neooosary for you to forward fcl,500. "before they
could he released. Slain sirply shows you the conditions under
which you are labor inn at present, and- should convince you of tho
importance of doing something and doing it quick.
NATIONAL PHONOGRAPH COMPANY
C,K* '* r: Fab. If), 3.910.
A. TUobook'aoho J’ontnn-’iJorko ,
AY t j. on-C'c a « II s oluif t ,
rrt'.lli: a finale, Germany.
Gentlemens
Owing to the .poor quality, so far as our uoo is con¬
cerned , of ..bout on«-half of Uia men tan wax shipped by you, during
Ttooomboi' and January, u<» h-.ve just- boon oompol3* d t« cable you
an follow:
"Kofcu no further shipments of v/ax similar to bugs C524 to
6693 1 and fl(>34 to 7023 and 1 to 144, as it in the worst ever
received, and not sane quality »u» originally supplied, (>r of
other bagB contained in crane shipments.. Presume shipments of
January 2«nd and January 29th, also contain acme of this poor
Material, v/hioh will p iv<; uo snore than con possibly use, therefore,
should furthur shipment a earn quality bo mads, we will have to
return than. Letter f ollov/B.8
Vo trout thio coble v/ao fully understood, and that after its
receipt, you have not, or will not, make any further shipments of
srfut of the ocmo quality aa contained in the bags umbers referred
to. Should you do no, wo Bhall bo - compelled to absolutely re time
to accept it, and. will return it at your expense*
V?o have letters on file from both you oral our 'Ur. ernf, he
having obtained tho info mat. ion from you, wherein promises arc
node that beginning Pee. 1909, all montan wax shipped uo
would bo of the anno quality as originally 'supplied uo sample
shipment in 1900, and no these promises -have not been kept, wo
now fool fully juutlfied in absolutely refusing, unless tho tine
should arrive when t* can find a way to uoo tho poorer material ,
to accept any more of it what ever.
I will go enter the shipments in wliich the poor material
waa included, ao complained of in our cable cram, and designate
the different qudl itiea of material contained in each shipment,
ao /rood, bad ami vory bad. That designated as flood, iu such no
wo conoid or of the same quality as originally supplied. The bad
is of a poorer quality, tut can be used by nixing it with a
certain percentage of the good, and the very bad ia auoh as wo
have not yet found a 7/ay to uao, oven by mixing it with a very
largo percentage of the good.
Shipment covered by invoice of hoc. 25th, 1909:
Good material, bagB 0164 to C403
3Jad material, bags 6404 to 6523
(a)
NATIONAL PHONOGRAPH COMPANY
Very bad material, baga 6524 to 6503,
Shipment covered by invoice of fee, .29, 1009;
Good material, bags 6394 to 6633
Very bad material, bags 6C34 to 7023.
StefP-mmt covered by invoice of Jan. 12, IDiOj
Oood material, bags 70: ’.4 to 7167
Very bad " " 1 to 144,
tthipmont covered by Invoice of 3a a. 22nd:
Very bad .materiel, bags. 145 to ZM
Coed material, bags 269 to 303.
Shipment covered by Invoice of Jan. 29th, 1910; bnga 504 to
268, has not yet boon received, but fvm. other uStipaionta mentioned,
vra have every roaaori to believe it will be about ona-holf rood
and ono-half very bud.
if you rude usy shipment uubuofiuuut to Jan. 2 J til , L-r.iC orior
to receipt of our cable, v.o yroouno it will also ho part good
and part very bud. The qw.lity of the material received 'in these
different sliirsaonta will, at you can obuervo , overload ua to such
fth extent •.? i th ouch largo pcrcuiitngc of the poor materiel , eon-
pared with r.'m snail percentage of good mat writs!, that wo will
not Juivo a cuff icier.!; quantity of the good. mate rial to ml;: in o.rid
uso Ute poor materiel up.
of our being u'.nblo to obtai:
during tise punt two or titree
other sources of supply, and
to your good qualify, is so :
hnvu boon fumiaiiinc, that v,-<
advantage , and we, tljorofcrc.
contract, you will be able t<
ardor to prevent our being oi
add it tonal aiippll us.
f affair u wjd the sou King impossibility
n a good material from, you, '.tmohavu,
nontJia, boon compelled to lock up
have purchased tiusrufrun, ncvercl
bile porhapo not ctpial for our purpose
much bettor than the bad quality you
o are able to uuo it to a much bettor
, hope that on !.h.* remainder of our
o supply uu with a good material, in
03,51 died to go outside a, gain for
Tie would like very much to bd&bj.out® toll you Just where
the trouble lieu, and vlmt the difference in between your good
and bad naterid, but an the difference only shows up through
actual touts, it in perhaps ir»pooeible to do 00. Our chief
Chemist advisee, however, that no for ao ho can determine — in
fact your teat sheets ohov; thin to bo the cnee, the good material
all run 3 m .Molting point 63.6 degr-.-oa or higher, -.die re as the
bad materiel rune C3 degree a and lover, arid that the other values,
acid, other, saponification, etc., ura in the caoo of the good
material low, and of the bad natoriel high. V.o 3iavc also ob¬
served tJiat in ever y Shirmuut mentioned, the good material was
cental nod in baga marked by certain letters, and acwod up in a
curtain manner, whereas the bags containing bad materiel wore
rsirked by different letters and sewed differently. This loads
m; to believe that the material shipped comes from two different
sources, that is, the good from V-'ansladon, and the bad perhaps
from Vfebau, or soma other' source. If our Clasnist's turalyooc*
of the trouble is correct, or our beliofethat you are shipping
us material obtained from tv/o different sources is correct, we
RAPH COMPANY
it occurs , and if nui
Why you JJhOl0.fi no t hi
only; at any rate, v>
tho quantity supplio
as you orj; increase
traction, ov obtain!:
tho proper (jrade.
out
;1l it
i r>W
d !:•
it,
what' tho trouble it> anti where
„taet c?ui a uo no ramson whatever
uipply uts vlth tho /;oo(l material
.at on 'O'i.r doinr- on, ovtm thc-u<£i •
inter lolly reduced until such tine
bv ohr.niyhv: your method of ar¬
terial fro n tin; nine now supplying
v.ra ittv e oiqslalned \/hat m thought \«uo the cauiso uf trouble
in wreviouo correspondence , and in ono letter written you last
fall, jjifiinl v u bated fcliat the material •.» required, and which
would he similar to that ■ originally .supplied, must ho above
doweea conRoalinc point, above' aoh, and from .15 to .40>
matter insoluble in bonaol. Vo also explained that, in our opinion,
and on thin wo lmve w letter from you oaricurrinB.th**. the material
obtained from you *y"T>no mine vma hotter than frwm the other,, or
if it wan not tho 'material, that tho method of uxtraatirir* same
was bettor at one placo than tho obiter. Our. explaining the ^ nattier
affpiin in, therefore, worhups ssnnoeeeanrs', but la done for trio
pumiouo Of (jivinR you tho benefit of every poesible reason we
can asaiipi or locate which mi^vt cause the trouble, nUTtcmch .wo
believe that the teat shoe to which you have, ooploc of vmioh are
cent \jb, show very plainly for thpmcelven that the difference .in
coiiRoallnR point in evidently the main cause of trouble , arid if
it is, vi: ' believe with your wide experience you should bo able
bo dotoraino tho cause of these differenooo, and arranjje to supply
material that will fully comply with our requtoteumts.
rindly let uw have your reply i« thic rmbior at the orrlaoct
pooBible moment, so- that wo ray hnov;. what arrcn«?erwnts we can
depend on in f-uturc*.
Yours v(>ry truly,
General Ktnr.^er.
CAMDEN. N.J.u.s.a. Feb. 17, 1910
Mr. Frank L. Dyer, President,
National Phonograph Company,
Orange, II. J.
Dear Sir:
I have your letter of February 15th, concern¬
ing the Harry Lauder advertisement.
I am strongly inclined to think that the Victor
Company are well within their. 'legal rights in advertising
in the United States that we have the exclusive right to
Harry Lauder's services for the purpose of making records.
However, the advertisement might be misunderstood and ±
believe that the Viotor Company will be perfectly willing
to change the advertising so that no misunderstanding is
possible.
I shall lay the matter of placing an explana¬
tory advertisement in the Trade papers before the next
Executive Committee Meeting and I believe that the Victor
Company will take this course in satisfying your complaint
in the matter.
I have ordered the discontinuance of the mailing
of printed matter containing the wording that you object to,
pending final conclusion of the Executive Committee Meeting.
I wish to call your attention, however, to the
wording of your Grand Opera advertising which, I think, is a
parallel case and of vastly more importance because of the
greater magnitude of your advertising in which the objection¬
able statements appear. The Viotor Company has paid Scotti
large sums for his exclusive services and we have also paid
Slezak large sums for his servioes, and while they are not
exclusive to us, we are certainly entitled to all that
we have paid for and you have no’ right whatever to state
that Mr. Slezak has sung certain selections only for
you. You have, of course, a perfect right to advertise
that you have hi8 exclusive services from a certain date,
or that you have his exclusive services for cylinders.
Tho wording in a numhor of your advertisements
has been extremely offensive to us, and while we have made
no complaint in the matter, we have been vory keenly aware
of it. I do not believe that tho National Phonograph
Company intendod to make disparaging reflections on the
Victor Company and I oan assure you that tho Victor Company
had no intention of making disparaging reflections on the
National Phonograph Company.
During your interview with Mr. Child, you made
some remark on the difficulty of controlling these adver¬
tising fellows. I cm quite willing to accept that this
is the gist of the whole matter. V,re will undertake to
make an extra effort in the future to control our adver¬
tising fellows and I hope you will do the same. I shall
make whatever measure and explanation of apology that
the circumstances of tho case seem to demand, regardless
of your actions and I will lay a more specific complaint
before you as to your advertising in the past, which I
hope will at least have the effoot of enabling you to bet¬
ter control the matter of advertising and I hope you will
aot as liberally with us in the matter of explanation as
we uct with you.
Yours truly,
NATIONAL PHONOGRAPH COMPANY
Poll. 10, 1910.
Hi’- Shorn s A. RO.icon,
Pori ilyora , Plorida.
Do. r Mr. Edison :
If you arc catisfiod no to tho feasibility of
nahinc diamond pointo and no find upon tontine the point you
cent uc that it works all rj£,hl , don't you thin]: no should mho ■
, an‘ nGc:®at{3 to commence nernuf act urine then go ac to he euro
to have enough on hand Vfc no cot ready to put out tho non
machines?
I think that tho machine should ho ready for the market ,
if possible .‘'not later than Oqto.VQr lot; that thcro should bo¬
at loaot throo different typoe, collinc at ;'?2D. 00, '40.00 and
vCO.OO; that tho &G0.00 machine should havo an onoloood horn;
and that tho smallest nunhor of machines to huild would ho
5,000 of oaoh typo. to niGht find r/hen W finally dioclooo tho
natter to our Jobbers and tall: with then that a larcornnnhbor
of machines will havo to ho nut ■ hreugh at tlio start-
In addition to this, wo ouGht to havo on hand at loact
10,000 attaohnonto to Go on Victor machines, so that altoGothor
tlioro nill h1 vo to he a good many thousands of points mdo.
As ocn as tho point is thoroughly tostod out, I think
170 ouch* to start in a snail nay and hoGin to manufacture thorn
2/lG/lO.
, PHONOGRAPH COMPANY y ^ y> ^
□o aa to find out hot; rapidly they on he n-nufacturod, what
they will cent nd how many wo oan tjrifco. IS tfO do not do tluo
then tho whole plan nay he held up hy thic one little feature.
If you ecroo#ith no, I wish you would lot no Imow juot
wJaat machinery will he neooacary to put in one unit for nahlne
tho point o oo that I can arrange to have thio done the monent
wo find that evorythinG i'-' -'-11 right*
Yours vary truly,
pip/iv;v;
[PHOTOCOPY]
Fo* . 2f3, 1910.
Ur. Ehonac ' . Kdlcon,
Fort Hyors ,
Florida.
Dor.r Mr. Edison:
Your two monoranduns on the subject of diamond
points have boon received. I r.n havinc tho question looked into
now v.'h other or not tho Phonograph Works purohasod 10,000 points
from Van Hoppes, and if so I -ill find out what became of1 thorn.
Chop- can no doubt Give no tho information if it cannot bo unearthed
hero.
Hocarding near, Aikon has mado a tost on a rocord fornod
of wood-pulp and Aylsworth'a rosin with G cuncoG on the speaker
and at 500 revolutions thcro was absolutely no difforonco in tono
so far as wo oould toll, and only a very slicht inoreaoo of surface
hardly distinGUiohablo to t7io oar- A port of tho record was nlayod
SOO tinos and tho root not at all, and in reproducing tho entire
rocord you could hardly- toll tho worn part from tho other. At
'SCO reproductions a very slight gray wear could bo- soon if tho
record was held up to* tho light, tho diamond point apparently
Grinding off tho material as a vory fine dust. She point shows
no polish, and it is possible that if highly polished there would
bo fiSf loss woar.
s/ 25/10.
Ytttli a record node of talc and rosin roinforcod with
cloth, the record fcoonno vory rough ' t 50 reproductions and was
practically dootroyod at 56 reproductions, so that there cm ho
no question hut what wood-pulp is the stuff to use.
Regarding tho manufacture of tho points, I have discussed
tho question with both V/ehor and ‘ikon, and they hotli fool that
this wor3: should % ’one hero and not at Glen 30ijgo. frapliagon,
head of tho Sapphire Boportnent , in a cautious non, and hosidos
he would not know what the points worc-usod for. I told Ai3.cn
to impress upon him t3ic inportanco of 3:oopi ng tho thine quiot, hut
that at any rate tlic' points were being developed for an indestructi¬
ble record. By liavinG tho points r»do 3ioro, wo get the bonofit
of Craphogon's onpori once, 'whereas to start over in Glen P.idgo
would japan practically break-ire in r new force. Craphagon lias
node a number of sapphires with .000 points for .'ikon, so that ho .
ought not to have any particular difficulty with tho diamond points,
sinoo you say tho problem is quite easy after all.
I have turned 'over to Sro.phagon tho four points you
send mo, w'tli tho request that ho try to work thorn up and lot mo
3aiow what the dimensions should ho, and I will then t:kc up tho
matter with fan iioppos and coo what they can bo bought for. I
note tliat you .paid seven cents apiece- for them.
Regard ng tho guiding groove on tho disc for food stylus
in tho record groove, Y/oltcr liillor end .'ikon liavo n do some
experiments and apparently tho idoa is all right, hut I will not
say positively that this is so until they nako a. final report.
2ho difficulty I would coo would bo that the norl: on t3io meter
would he incrcacod. ”0 could take core of this, of course, in
::/ no/io.
NATIONAL PHONOGRAPH Cl
doBlcniiB :ft noohlao c
■colvca, but In nofclnc an attaohnont for tho
Victor I'aohinc a anallor sound-bo:; night have to be used no aa
I also foftnd nyaclf that if an
not to -DVorload thoir notor.
.008 point io «*r ncod on a Victor sound-boa, tho xnotcra in tlio
ancllor typos of nachlnoa arc hardly strong ono.gfi to tarn a
record v;lth up-and-Coun cut. Apparently it ia lihe pulling
a weight over a very rough aurfaco. So aaftfcc an attachncnt ior
tho Victor machine to fit our rocorda vrill thoroforo involve
nahinc tho noun:1 -boa considerably lighter-
Sours very truly,
[CA. MARCH 1, 1910]
. . . i- . ........
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- CG-e iu &Tc> * uo oc,e 6 ^
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itk >cUL|^t.^<=5-^'-€^-s> / k-C*_«Jr£, Cc. ,1
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N.L^-ejxd't ^ Z- i Los.
y> CP-'-'^C' CA. tnnJ'^ — TVC -*fcA.c<^
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. t-<X^CC_c ’y^rc’^'d'S* -
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\[t,c£-<n' Crt*jc,c- c^O-&. <
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P^k-fUMA^* » vvc«. UjlO-£^»*-««a6
[ATTACHMENT]
Mr. 2hojv.h . . Kdicon;.,
Port Myore, I’lorlda.
Dear Mr. hdionn:
I have jimt received your ::: or.-.-.:' or. :.'u;
subject of —attlng - gui dinc-Cro6*»*° in the record.
In dr s c us sr .:g j.. i " !.ir.H .io~ ••iui ,.c ocr , c.-er, . . . '.X. 0 0 r
Miller -r.d ."ehiffl, *:-*cy arc 11 o-yoaod to —lifting foed-groovo
in the record r.d advocate ' r.aohi c with a true r.cc.'. r.ical
i'cc.d. 2ho objections to a fccd-grc vc. the record re:
1. It lir&ta the available length of ton record groove
If a food screw is net used, t 0 record groove err. *00 run very
nuoli furthor in to the center and nuc'Ji longer rcgrcductions ob-
tninod.
3. It tehee a coed deal of weight :o hold the food- •
iiiG stylus in tiro food-groovo , ' nd ’thia in_.oooo a considerable
additional load on the motor. Walter Hiller tolls be ho fibs
DUr.ricod to find how uooli weight bod required, hut of course, if
the BOund-liOs, was lichtor this objoction would not ho 00 ni’O-
nounood.
5. She foodinc stylus in tiro food-groovo vory material¬
ly increases the scratch-
On the oth.or hand, by doing away with the food-croovo
[ATTACHMENT]
,2 2/5/10. NATIONAL PHONOGRAPH COMPANY 2 ■ A. kdlCOn.
on tJio record end providing the machine with a nochnnical food
thoro nro the following advantages :
1. s?ho naolvino ia arear ont ly noro simple and not do
trappy looking-
2. Vo liavo a longer rocord, one that can ho provided
on tho innido with a good locking label and which would not bo
chanced when the Berliner pat onto expiro.
She objections which. I con coo to the ueo of a nochnni-
cal feed with no food-groove on tho record are tho following:
1. It would bo very dance rous to put out a o|fj$Pttfce
attachment by which Victor and Columbia machines could play our
•records, bocauco in that oaco we would bo soiling an attaenront
and a new record that would probably infringo. Of course wo
could mho the ce attachments for calc abroad, but it would not bo
safe to soil thorn here until the Berliner patent?^;' e::i dro.p. Clio
date of the expiration; of tho Berliner patent is not entirely
certain. •'. hvoryonc horoto : ro has aominod that tho patent cx-
nirod in 7’cbruary, 1911, but roccntly the Circuit Court of
Appeals at Philadelphia ( two judges against ono ) docidod in
another ease that under the some eircu stances the U. patont
waG not limited hy tho foreign patent, end if this is the law then
the Berliner patent will run for another year, or urtil Pobruary •
1912. She Plriladolphia Court is exactly contrary to t’no Boston ■
Court of Appeals, and I liavo but little doubt that tho Supremo
' Court would rovorso this ' decision , but it would bo too dangorous
to tolso this risk, and undoubtedly the Viator people would brine
suit ' against ono of our dealers or jobbers in Philadelphia so
as to. have tho benofit of .this decision. Shis bcinc so, if wo
loavo off tho food-groovo from tlio rocord we would have to wait
[ATTACHMENT]
until February 1912
„mt to wait our rooorda to bo Ployed on Victor on. Colombia
r.iaohinos , and this
rcry considerable lose
ot available buoiucco. It to rood the £»od-croovo on tbo roooni,
, have no doubt but tbo.t on ottoohwnt ton Victor cad Columbia
uochiroa could bo Viiodo t but Mi bo clean ol aaa*BM*.
jh'cr' with this possibility in front of us our non here, partiou-
i-viy -:lloon. Polboor end Oooduin, tool tbo.t it mold bo bettor
to cto.rt out ut r: ot rith our ovn unoblno no cm- oun rooordn
and build ur. a |ood feican business on that lino, “ic'-a
■ooplo • One of ;
noint X have nodii
out, Goodwin having tai-»d very ptr. 1
i feel ilv/t in ordor
ham -.inch, the discs fill
far apart as possible, the disc machines and records being rela¬
tively euponsivo and . appealing to the city element , am-thc^
cylinder line being ehoapor coins into tho country and to wio
worliing non- V.’o therefore thought th-t tto should start out with
0. disc machine soiling for .$50.00, on enclosed horn machine
selling for $75.00 and possibly a more expensive machine at
$200.00. If tie should put out disc machines as
.they would undoubtedly
; into tho cylinder :
[ATTACHMENT]
C/C/ 10.
p. A. Kdiocn.
ATIONAL PHONOGRAPH COMPANY
oharo of tho city trade without particulnrlyf^xiinc our own cyl¬
inder business- Of course, lator on ns com as the thing G°t
Seine v;o v:ould have to tnfco’ up a dfioc w disc nacMno, because
thoro would undoubtedly- bo a demand for fchcA from our dealers,
and when this tir.e erne wo night bo in a position to reduce the
price of cylinder records and possibly sot out an indestructible
record, which, would continue this business indefinitely.
n. By nrovid X the nachino with a nocha.nical food
it would . Isc bo impossible to sell n attaobnont that would rr. bio
Victor or Colombia records to bo played on then, b-couso the -itch
of our rocord is finer than theirs- C-hic ‘would necessitate tho
use of cosnlicatod spocd-ch- ngir.r; devices’
screw. hut if you are :•! in
until later and limit ov.v.n Ive
rooorda th t will play on our
thinl: tho : achincs should h-
idea of a record that will pi:
•..ait i' r those attach: -onto
,• the sale of machines and
.ires only in this country,
nee. ..‘nical food, because tho
‘.re minutes or "ore is very
attractive and would nnic a very strong t aiming po :.nt -
I note what you say regarding oponhers, and in accord¬
ance with your roouost I beg to advice you th.at in th.o case of
the Victor Ihdiibition liodol Bpoahor the weight of tho sound-boa
is 0 1/2 ounces, and of tho owinginG am ono ounoo, noising a
total prossuro of 6 l/S ounces on tho rocord. In the ease of the
Bathe Concert Sweater, tho weight is 7 7/8 ounces, wacrcas wiuh
the ssinll Bathe Bnoakcr for use with tho Victor machine tho wight
[ATTACHMENT!
O/c/lO.
YOGRAPH COMPANY
A. Edison.
io C ounces. She dianotor of the sty2.ua ball in the "at ho speaker
•is 40/1000. My idea v:as to substantially copy tho Patho spa ah or .
An- 1 --.-veto you, with cn C/'lOCO diamond point and a sycc.har woigli-
•j nr- 5 ouncos, Alton obtained, 30 r- roproduotions without any up ro-
cic'.blo woar; certainly vt> could not on-poet to do nmeh b ttor than
this. She Tjatho opoefcor io simple and cheap and good-looking
ar.d there is no chance for rattlo or bussing in it. It has boon-
tcoted out end would not roquirc any' experiment 5 n£ on our part.
If wo put out an entiroly new speaker wo night have troub'o in
having then all wort properly. In tho caoo of the Pnbcrola, we
arc still having mere or loss trouble with some of our speakers
brooking through the side walls of tho record,, but sc far H r.
Weber has not boon ablo to toll why a or. 10 of thorn skcu2.d do slds
and otkrs not. I of oovroo realise that with tho disc prepo¬
sition, having u. vory ha.rd rate rial . r.C a relatively heavy
speaker, we would probably have 1 0 a trouble in getting uniform
.^isdifihiisfaotory results than with, the Pnbcrola, but tho fact
rouaints that V.’cbcr novor anticipated half the trouble he has had
whon tho Anborola spoahor was dosignod by him.
I wish you would thirst over those matters and let 1.10
have your views as soon as possible. It is nooossary that ’"alter
Hiller should go ahead with a nunbor of Grand opera records on
a disc,' but I do not see any reason why he cannot rako then
without the food-groove, ‘ end if we docido positively to use a
food-groove it call be afterwards cut into tho naotor.
Yours vory truly.
HJ)/I\7W
Sinco dictating tho above, Walter nil -or has
just handed
[ATTACHMENT]
NATIONAL PHONOGRAPH COMPANY
no a roport on tho nano quoDtiono , . nd I hoc tc onoloco a copy
tlioroof. I tliinl: lie 2ma covorod all ire ;vinte very fully.
I night &l-:o pay that I have juat had Ion,-; conforor.co
with v/c'oor, 'Ikon, Gal,’ , fra haycn and hchiiffl ovor the r.bcrcla
citsvtion, r- Volic r fcclc vito ov.ro- f-- t •: he cr.i’.oa of tho
Giffiev.'.Uy of cuttinr; thro-yah tho aide wr.l'c :1c the fact that
tic pivot for tho flc. iirr v.-cicht in the /.rberoXa had ..ore or
looo Mnd in it. ho finds t: at by noisy; tho earn pivot ac on
t: ■ del n ore.-.* -.or tho difficv.ltioc are .••.-•arontly cvcrccr.o.
[ATTACHMENT!
. ' V.
t&'k fc*~er?£e~C-
^ *y
^U'-vi'tXr^^J ~J~ — -
' 6 '/*. /?
( y% ‘j°
^»uti y/oso
6- oy.
Bear Edis>
tel?1
'o^a. 6
iXju UlIIc£~. 1
a ^Hi^opappeal Before!
I need your signature with mine on a EaSCc
our papers can he filed.
The Judge whA made this necessary is known as a friend of the Master,
It^was_ not_ Budge Hazel who has already decided Broadly in our gavor
on the main case.
The Master to whom the matter was referred for an accounting in
damage s._ for infringement By use chose to disregard the decision of the
Judge as to the conduct of Gould in appropriating our property to his
own use and that of his company .and took his own view as to infringement;
and as the records of A. £= P. Tel Co. had Been destroyed By fire no profit
could Be shewn from use^ and the Master wrongly refused to permit us to
put in secondary proof.
The A.&P.Co. used the Automatic System for 2 1/2 years, and then
abandoned it after Gould had forced the V/.U.Tel.Co.to pool earnings'
By which A.ft P. received $1,893. 000, net in 40 months priorto the
consolidation of 1881, making it a dividend payer of 4 1/ap.per cent
worth $60,' 00 per shariat which the Iff .U. valued it also in the consolidation/
The Master even found that Gould holding our titles enabled him
to force this pooling, and had good faith Been followed our gross interest
would have Been about 1/4 the net earnings .
The Master also found the A. ft P. stock which we should have receiv¬
ed sold at $29 , 50 per share in 1875 even Before the pooling .
Well anyhow the Masters fee under the statute is from $*Tto $10. per
day for hearing the evidenceand making his report.
J^-eertain the court has discretion to increase
20 Broad Street
New York, _ 191
the fee, hut in this ease it was not fixed hy discretion, hut the Judge
held there was an agreement between counsel fixing the fee at $3,500,00
which is absolutely untrue,
Ehey were never able to shew any such agreement.
Our oounsel never agreed to any fee, for he always told me there
was no responsibility on our part until Judge Hazel should be overruled.
Furthermore our counsel had no authority to agree to any fee, and
it
never suggested^to me^nor asked for any authority.
Ehe claim of an agreement is based on a statement of Eaggart the
W.U. counsel, who wrote a letter to our then counsel,Eudge Burnet, dated
February 9th 1909 asking Burnet if it would be satisfactory to divide
the fee of $3,500, 00/ and if so he Eaggart would arrange with his client C
i^ Burnet would arrange on his part.
At that very time Burnet had been dead 4 days, having died at my
Hospital. ^ ^
I have stated this in some detail so you oould^the truth and see
how groundless and arbitrary is the feejas fixed, and as shewing the
absence of risk in signing the Bond.
However we must give the bond^and I think I can obtain a satisfac¬
tory Bond here without any other security than your name and mine.
She firBt' ;appeal papers are all ready.
Eocomplete the printfid record before argument before the circuit court
of appeals will cost about $2500,00 blit I have already arranged to
take care of that, so that atjpresent all I need from you is the Bond on
appeal from the Masters report and especially appealing from his
extraordinary and unjust fee.
I will have the Bond properly prepared and execute it myself, and
I can either send it to you for signature, or if you prefer you can
send me a note authorising me to sign for you in this particular case,
which I think will satisfy the Surety Co.
Please telegraph me on receipt of this so I can push things as it
is very desirable to close it up during next week.
2. - 5/14-/10. NATIONAL PHONOGRAPH COMPAriV EdlflOn.
. tine thoir account had bo.cn running about $10, 00 to §20 000
• T>or month, in fact, aono months lose than this," and I thorofore
aaid that I thought tho notoa would not amotint to noro than
Osoigpoo for bach of tho two months. in tho Pall baboon Bros. '
bogln to advertise vory' heavily, oo that beginning with booonbor
thoir purehaoo|| ineroaood to a vory groat ontont, end I an glad
to aay that thooo imreliasoo aro otill boing Kopt up and apparently
inoroaoing. in voluno, consequently, thoir purchases for Docombor
amounted to (=60,005, for which wo accepted Baboon's note ondorsod
by Baboon Bros. , duo 'day 10th, 1910; and their February purchases
amounted to @95,475.79, f r which they have oont on a note t; -day
due July 3.1,. 1910. Ciiio will ,rr.3ro u wards of @150,000 that no
will carrying on notos for then, but I do not entertain the
o light cot doubt but' that they will noct '.thorn promptly. Thoir
January accoiuit, amount ing to @00,500 was paid in cash, and tho
understanding is that tho ilaroli and subsequent accounts arc also
' to bo paid in cash.
I want you to understand tho situation .because tho
amounts arc vory much higher them I told you they probably would
bo, duo entirely to the fact that thoir purchases since December
hnvo enormously increased. You my be intorootod to Imow that ■
Baboon Bros..' purohaaos for February woro .nearly S5j5 of tho total
purchasos. by othor Jobbers in tho United states, and in view of
tho groat offortb our competitors have made to got thorn to toko
on thoir lino, it scorns only reasonable tc mo that wo have got to
do ell wo can for thorn oo long as it is consistent with sound
financial policies.
. Yours very truly,
FBD/IV/T7 ■ . \ , . / . . ,'w
[ATTACHMENT]
3roa. * notes for recover arid Tolmiary account a and to allow thorn
2‘fo dinoount the same as if they paid cash., the notes, of oourae,
to ]>oar interest at tho rate of 6# per annum. I told him that
?/*£> ft/
NATIONAL PHONOGRAPH CO.
ORANGE. N. J.
EDISON PHONOGRAPHS & RECORDS.
Doar Mr. Edison:
Your memorandum of tho 6th inst. has hoen received
in roforonce to disc machines and records.
If a food-groove on the record is used, Walter Miller
figures that it will not he possible to get four minutes on a
10-inch record, because there ought to be at least a space of
3/8 of an inch between the record groove and the feed groove in Which
to plaoe label. If it is definitely decided to use a food groove,
the records will still bo longor than Viator records for the same
size disc, but if a feed groovo is not used thore would bo abso¬
lutely no comparison in length ''between the two types of records
'and we would have a very strong talking point on that score.
I note what you say regarding the decision of Judge Hough.
I think I read tho article in the Talking Machine World to which
you refer, but it was a statement preparod by the Victor Company
and was therefore greatly exaggerated. Thoy claim that the
Berliner patent is infringed by a mechanioal feed device if
by omitting the mechanical feed the sound box will be fed from
tho record, but there is absolutely no basis for this claim.
The exact case that Judge Hough deoidod was against the
SHEET No. 2 DATE, g/l4-/l0. NATIONAL PHONOGRAPH CO. TO I . A. EdiCOJH
Schroodoy Conip T:ny , and I iininod lately looked it up and found that
at., the hearing it was admit tod the dofohdents that ihe po.ehon-
ioal food thoy used, was a more subtorfuge and they put no reli¬
ance on it. All that they had was a spring which tended to force
tho tono arm ■ inwards towards the center of the record, so that
the roftord instead of feeding the ami held it baak against the
tension of the sprliig and permitted tho spring to do the feeding.
Obviously, this was a makeshift or a more reversal, and it must bo
remonborod that in that ease tho defendants were using reoords
with a lateral cut. furthermore, this oxaot form of so-oallod
moohanloal. food had alroady boon unfavorably passed xipon by tho
Federal Courts before. It is by no moans eortain but that a .
req or d usfng an up-and-down cut would not infringe tho Berlinor
patont, oven if the sound-boi: wore fed from tho record. In all
of tho suite! that have boon brought on tho Berliner patent tlio
rooorus h&vc hoon provided with a lateral cut and have either had
no mechanical food at all or else a spring food like that re¬
ferred to aboy§. the Supremo Court specifically 3aid that
Berliner's invention was the lateral cut record, and the only
statement that has boon mad.- to tho contrary was oh intimation, in
a decision of Judge Basel that tho patont might not be limited
to such record. All of those statements have been obiter dicta
and weye not necessary for a decision of the prociso issues in
controversy. Since the preoiso point wo aro interosted fn has
nevor hoon doteictod, i.o. , whether the Berliner patent is or is not
limited to a lateral cut record, I regarded the question as doubt¬
ful and therefore advocated a mechanical food, cither by moans of
a food groove on the yedord of a feed modhanism on tho machine.
If a mochnnipal food of oitho* type is used, I regard the ques¬
tion of non-inf ringCuont as absolutely free from doubt, for the
. 3- DATE, 3/l4/l0/ NATIONAL PHONOGRAPH CO. TO T. A. EdiSOn.
following roasons:
(1) The record with an up-and-down cut at tho very
outset injects a strong element of douht in the case.
(2) Tho Loeds & Catlin Company made and sold a largo
number of machines with a mochanioal feed without being molested
by the Victor Company. This was aft or tho Leods & Catlin Com¬
pany had boon enjoined from infringing tho Borliner patent, and
they never suoooodod in stooring oloar of tho Jones patent on
process for making disc rooords. They finally failed because
Leeds died, they were heavily in debt and they had beon stopped
from making disc records.
(3) Your patent of 1878 shows a disc record with an
up-and-down out and with mechanical food device comprising a food
groove on the platon and other forms of mechanism for feeding the
swinging arm. Undoubtedly the swinging arm would bo fed from
the rocord if the food mechanism were omittod. Therefore, if
Berliner's patont is broad enough to cover a record with an up-
and-down cut it would havo to be contondod that his invention
resided in the disoovory that the feed mechanism of your 1878
patont could bo omittod. Bor contra, if the feed mechanism was
not omitted, Berliner's invention would not bo used.
(4) The original Boll and Taintor patont of 1886
showed a disc record with a moohanical feed for tho arm and a
flexible sunport for the sound box, permitting the reproducer
stylus to oenter itself in the groove independent of the feed
moohanism. It is truo that with this patont the platon as a
whole was moved sidowiso to effect tho food, but your 1870 patent
clearly shows the use of a platen turning on a fixed pivot and
With a swinging arm carrying, the sound box, so that there would
obviously be no in'
Company it was argued by r.auro that
nstruction permitted the sound box
vontion would bo roqui i-od to i.pronge tin- sound box so that it
vrouid bo fed entirely across the face of tho record by the record
itself, but the Court hold that to utiliao Berliner's invention
tho entire feed had to come from the rooord. If wo use a aeohan-
ical food either in the form of a feed grogvo on the rooord or
a truo food dovioo did arranged tho sound box so as to bo capable
of a slight independent movement to center itself in the record
Groove, v/o would bo using tho oxaot construction of the Boll and
\ !Cainter **t*a%. I admit that if you can design a sound box which
I is absolutely incapable of being fed from tho record, it would
introduoo a further olemont of non -infringement , but I do not
regard this as strictly nocoscaryv
^ ^ noforring to your noto Ho. S, I agroo, of eourso, that
if as good reproduction oan be obtalno, with a .1 l/a our.ee weight
as with a. 5 or 7 ounce weight, by all moans the lighter weight-
should bo usod, because it moans loss wear on tho stylus and los^
showed that there was no appreciable wear wit
and even if wo had to fall bade on tho ohollni
certainly bo as well off on the subject of woi
Bathe people,
somposition certainly
ie! uneasy about tho Baekeland situation,
j DATE, 5/14/10. NATIONAL PHONOGRAPH C
0, ^ -» vJ/'J V* 1A *
cyt^XwivW/V-r,V.
— i, except poss^ib:
yp oltvim, but I urn hopeful that when you return you may find something
C^,.'K'^hat Wil1 1:0 ']'UGt as e°od a° v 0Qd pulp and v;hicl1 will remove this
^ doubt. At any rate, the quastion of the arrangement of sound
'VT $ t0:>: t0 acl°P'bo,i will not havo to bo settlod until you return.
Referring to your note Ho. 4, I can only say that Walter
.tiller reported very strongly on the subject of scratch when a
feed groove is used.
tot investigated as fully .
as it should havo boon, and it will of course havo
tho problems that must bo solved if wo docido to at
ido to adopt the feed
Ronlying to your note Ho. 5, Whiter bailor is 3
inko up a lot of masters, but in the case of Carr
:ight away, and those are the parti.
lar ones I referred to.
\ ;i 1 fe0d Sr00Ve and if ™ dcoide omit it hereafter tho feed groove
jj $C£m Tj0 cut out or Qlso the label pasted over it.
Z 5 j A Rejprtes-ia^^ur note Ho. 6, I explained your idea
-jj t l°f us rt ing whool^or ball to Walter Hiller, and ho will
^Jj . ^jtjry^this out. In-yuur'^pinion would it bo possible to use a
pL^ni sharP-rlmmed wheel working in tho feed groove to effect the feed _
/*~T\ l j itself? - QojfLR-e. G*. <>-*. l«~«i
-A » -> \ - dUrv-T Aft. ti *»~
h , , H:fef you
• ** absolutely that both ideas should be tested out fairljrandjhonestly
and the one adopted that sooms the best from all points of view.
This will bo done as soon as possible although tho work is dis-
couragingly slow. The thread will bo 150 per inch and the repro¬
ducer with an 0/1000 ball, which I note you agree to.
NATIONAL PHONOGRAPH COMPANY
4.tr. Shoiac.a A. Edison,
Port hyors, Florida.
Door-Iir. Edioon:
In tho llov, ¥opk ' 'homograph Company oooo the situ¬
ation, as you know, io that Hyiaon. is seeking ‘to rcoovor from ,
Andon, -Fahneotoolc, I'omAinaon, otc. , a sh *re of the no ry obtainod
•by thou and Judge hoOgh hoc Given • yntrn a auCgeucnt for ('.130,000.
Andon and hie aooooiatoo arc very .• nsiono to oanpmnioo this
ilyciari natter, and I undorotend iron :.ir. Clarko and Judge llcfoh that
thoy havo practically roaohod'a sottlonont. 2 online on particu¬
larly is anxious to h'avo the nsttor sottlcd, because, as you know,,
thoro wore some ve^y shady transactions in' connection with the. ,
distribution of tho monoy wo paid. A few days ago hr. Clarho
caw no and said that tho only thing1' that stood in tho way of a
sottlonont botwoon liynan and tho. Andon people was that foniincon
insisted that wo should give fonlinson's firm and Andon and his-
fellow directors of tho .How York Phonograph Go. a bond indonni- .
fying then against any illogal or unlawful acts which thoy had
committed in ccnnoction with the distribution of the money. I
told Ur. Clarho that wo . wovAd not considor for a raonont any ouch
insane proposition as this, bccauso. I did not Imow how far thoy
. , •, . 7 •
f> ' ' 5/15/ij.O . NATIONAL PHONOGRAPH COMPANY /l . EcllSOIl.
had G°no and that to givo thorn c. bond would probably invito a
cont inoa.no 0 of th.o litigation -on tho part of corno minority stock¬
holders who night find out or bo tipped off regarding thoir
unlav.'ful actions ; and that wo woro out of tho oaao now and pro-
poood to stay out. I oaid, howovor, that 00 far ao wo v/oro
personally conoornod wo had no dooiro to profit by their unlawful
ooto and that wo would glyo thorn .0 ' roloooo- and also an agreement
not to bring suit 'gainst- thorn or to ctir up litigation. I on- .
olooo papers tc oarry out thlc suggootion an follows:
,(1) Ooaoval Roloocoa. to Fahnestock, Anion, "nines and
Frail, who woro th.o responsible 1 rectors in tho how York ~iiono-
graph Company, .
(2) A Conors 3. loloaso to Tomlinson's firm' and ,-lsc
tc tho individu"! aonbors' th.eroof.
(5) An • agroonont not to bring suit or to stir up
litigation.
1 have indie: tod on th.o payors just how th.oy arc to bo-
signed, and 11 of thor. rooiviro to bo acknowledged boforo a
notary "ublio at Fort Hyora, or.oopt tho holeaso to fonlinoon'o
firm. I havo tried to make .th.o instv.-.cticr.s regarding tho
ao knowlo dgmont s as simple as possiblo, and if tho notary . at Fort
!.!yors is a man of ordinary intolligonco he will hero no diffi¬
culty in sooing that they arc onooutod corrootly.
If you. have any objootion to one outing thoso papers,
lot no know. Of courso, thoy would not ho dolivorod until tlio '
aottlomont with Hyman was actual y concumr.atod. Wo havo alroady
paid our monoy and nothing noro romains to bo paid by us. With '
tho sottlonont of tho Hyman mattor, tho IIow York litigation ought
to bo pratty offootivoly wound up. In fact, tho only thing that
3. 5/ 15/ 10. NATIONAL PHONOGRAPH COMPANY 2 . A. EdiOOn.
1 oan dco that oon ho dono would ho that aono minority ctochholdor
night bring an notion agoinot Andoo and hie aosooiatos for a pro¬
portionate' distribution of tho nonoy unlawfully rotainod hy thon
undor^tho -Comp contrnot, hut this io a natter that wo oro not.
■interest od in-
Yours very truly,
eld/iy/w
Enc-
NATIONAL PHONOGRAPH COMPANY
::'.r. • Cliontic :i r.or: ,
"c-.-t t; , i’Xorido.
I hr.ro rend with a Great dor.2 of ihtornrjt your
<- I nciga c- j let'. or of the ■> ir.ct'. .An-arostly thcoe do’
reo.ad.rc any definite ar.rr.ver, c:-joo;t yc.ur note on the mb.lect
• •yAavox’--.;}'. and tr'£od hair and cotton lint, but .tlAon. tolls no
tbr.t neither ’I't.-rh-l. would nnevor the v-urpcco be^feiiao they r;oro .
rov cufiicicvhly nbcorbent. ui nl a <■ u a Great deal of
;:-.r reels. hV t for.-.c nn ortrcnely lir.rO. eii-.ee vh.cn 1:<i:od. 1
Alien if ho had tided infueor-l' A earth, and he cr.id they 2ind
hut tj'.o rooultin£j. oonnooiticn vno too brittle. I understand tlidt
infusorial garth is very- absorbent'. . V.'o.uld it bo poooiblo in your
opinion to cot btronGtli by uning -infusorial . oni-th. and oorao fibro
li’:o cotton lint? . , • .
?.cj;e.rdin£ cround aobootoe, Alien' hob not triod tliio,
but 2ic nill do -right away and coo Jiow-it turns out. It would bo
very cood .if tjc oould uco- asbestos, . bo.oauso in the prior art
cohoBtoo in suGL'CStbdhas a rntoid.nl for this purpooo.
Yours very trvily,
/J-\ .
[INCOMPLETE]
•; : ; . ■- • :r*
: 1
o/21/lO. NATIONAL PHONOGRAPH COMPANY 2. BdiDOU. I
v/atj also1 worth a good deal of money; and I agreed, thoroforo, to
accopt q note for $-80,000, nignod by henry Dobson and ondorood by
Baboon Bros., falling duo July 10th. she other note for §68,000
is signed by Prod Baboon and is endorsed by Baboon Bros. , and falls
duo t&a^lOtli. ■ She reason the sooond note in for §80, 000.. instead
of §91,000 is that Honry Baboon agreed to as sumo, a Chicago adver¬
tising bill tor §11,000, which 'I told him ho could hot oxpoot us
to pay in cash in view of tho note settlement. Ho also agreed to
make payment a on his note for §00,000 at tho rate of §10,000 for
this wool:, §10,000 no:rt wool: and, if possible, at least §20,000
a month afterwards until tho note falls duo, when it trill bo taken'
up. .
Under tho circumstance s, I do not think you need give-
yourself the slightest u -easiness as to this arrangement.
Yours very ,mly,
LIC ACCOUNTANTS
:/'■ ■
DANK BUILDING LAND TITLE DUILDINO
23rd March, 1910.
P.. L . Dyer, Esq., President,
National Phonograph Company,
Orange, ir. j.
My dear, Mr- Dyer:-
• niujxudc xierewixn one of
Detroit books , containing their plan of organisation. This
in somewhat more elaborate probably than would be required
for your Companies but I think the scheme is a pretty good
one. it might be possible .to arrange it in the form of a
chart , rather than on separate pages of a book. if you
are interested, I shall be glad to take the matter up with
you and see if we cannot outline a chart which could be blue
printed and distributed to those whom it might concern.
Very sincerely yours,
TOI1/L
MEMORANDUM
Ur. Smith.:
5/26/10.
Hoplying to your memorandum of tho 24th inst . , iny
personal view offhand is that it vzould ho unrrioo for us to file
foreign applications on Hr. Aylsworth' 0 Condonaito applications.
Foroign patonts aro ejcponcivo to maintain and vie hr.vo novor made
any money cut of them. By filing foroign applications which might
issue promptly vie would giro Hr. Baekeland a Tory good opportunity
of seeing just what v.e aro doing, whoroas it might ho well to koop
this information from him as long as possible. Furthermore, I
understand from you that thoro aro roforonoos that stand mono or
loss in tho way of scouring Tory broad claims on 2dr. Ayls worth' s
invention. You, howovor, aro in position to give hottor thought
(2)
to tho quostion than I am, and if you do not agroo with mo, lot
mo know and I will roconsidor tho matter.
fld/i mi
F. L. D.
Hard'. 26, 1910.
Mr. Thome Edison,
Tort Jurors, riorida.
Doer Hr. Helicon:
Your pencil fpjj^randun hq$ been received in
reference to the announcement by the r-rnphophonc .Company that
tl'.oy intend to use di.ar.cnd point a. This run cvnc ament looked
very our. pi ci one to ns, in view of our own work, and J suspect
that the usual led: has occurred, although X have not the
slightest idea who is responsible tor it.
.■\o con ao the a.nnounconont was node , .1 in.;odi.toly
cent in to You York and purchased one of thooo sc-oallod diamond
points, which was represented an genuine diamond by the Colunbla
peoplo. It tog then tinned over to Mr. fraphagen, who tells no
that it ic not a diamond hut a sapphire. This coonc to he tho
usual Columbia gene of trying to anticipate an in every way and
naking aunouncononts rd.th.out any regard to tho facts.
Admitting that they are actually worldng on diamond
points, which they nay lator on bring out, tho samo thought
occurred, to m regarding tho possibility of our being embarrassed
by a suit. I do not tliink, however, that they could bother us,
cf r tho roason th.at our claims on tho diamond point are in
12 ■ 5/ss/lQ.
NATIONAL PHONOGRAPH COMPANY KcTiCOtt*
combination v;ith a record mt.-rlr.12jr Harder then celluloid
end iwofomlJly v/it3i a hoavy vioSjM- V/it3i t3io Indoctr- otiblo
record, celluloid, el course, io used and a comparatively Utfit *
™lcht\ n aoom lo !no ««•-* aancoo of the di nond re
not fully realised with tho oolluloid record, booauco a oa.rthiro
onsv/oro substantially for ell practical purposos. Unloss fno
clnirio are limited in come ray, I thirir it vorjr improbable that
m° rotoat rtU over bo Granted, end even v/hon co limited the
ouonticn is. vory doubtful, because diamonds Havo been sucsootod
®° ."possibly capable of uec in tide art.
I'bb/iv.r;
3ftnu?0 very truly.
[ATTACHMENT]
Your pencil memorandum has been received in
reference to the announcement hy the Graphophonc Company that.
[FROM ALPHONS WESTEE]
v Mr. Dyer:
The cash requirementsH^or^^Mf^laboratory during the month
of April will ha $110,500.00, which includes $50,000.00 for the
Edison Portland Cement Co. During month of March we took care of the
following outside interests:
Edison Storage Battery Co. to the extent of 37,500.00
laboratory for Pay Rolls & acots. to the extent of 16,000.00
Edison Portland Cement Co. to the extent of 50,000.00
The lansden Co. to the extent of 3,500.00
A total of- . - . $107,000. 00
In order to do this we were compelled to hold up $63,800.00
of our regular and discount accounts; in addition to this we are
holding up
Calkins 6s Holden 25,199.95
Riebecksche ” 8,700.00
Qotthelf Heimann 6,252.65
Rutgerswerke 10,064.34
Eastman Kodak Co. 15,000.00
65.216.94
Making a total of T^OTCTTOIT
Eor the coming month I estimate we will require
for Pay Rolls 220,000.00
for Accounts 150.000. 00
A total of - — $499,000.00
As near as I can now estimate cash receipts will be about
$400,000.00, so that according to these figures we will be short
about $100,000.00 for our own requirements , without considering the
laboratory and Cement Co*s needs. The only solution to the problem
is to put .ourselTsa back on a 60 day basis. We now haws paper dis¬
counted with the different banks as follows:
No*. 2.
Natl. Co.
Ed. Mfg. Co.
Union Natl.
85,000.00
50,000.00
No. Ward
35,000.00
2nd Natl.
15,000.00
15,000.00
If the notes disc ounted hy the Camant Company do not intarf ara
with our cradit wa would ha entitled to further oradit from tha hanks
as follows:
Union Natl.
Natl. Co. 65,000.00
Ed. Mfg. Co. 100,000.00
A total of $180,000.00
No. Ward 2nd Natl.
5,000.00 5,000.00
— . 5,000.00
Tha North Ward and Saoond National Banks have exprassed tham-
salTaa as dissatisfied with our accounts, and I douht whether they
would he willing to extend further credit; so at tha present outlook
wa would have to look to tha Union National Bank for any further
favors. If wa do this, and taka care of tha outside interests we
ara going to find ourselves at the end of April in the same financial
condition that we are in at present— unahle to take care of our own
accounts without issuing notes which would he detrimental to our
credit just now.
vc Yours respectfully.
3/&0/i0.
NATIONAL PHONOGRAPH COMPANY
TAt, -W.
Harcli fr, 1010.
Mr. fflionan A. Edison,
Port Myers, Florida,
3Ms lottor rocjulroc very careful consideration
hy you and urgent action. It relates to financeo.
Jmi-inu the no nth cl March tool: care or fee follow-
lss outside interests:
Storage -jl.'u vo r y oo . • MV , MOO
La'uoratcry ( for nay-rolls arid
accounts : 10,000'
•ortlanu Cement Co. 00,000
lancdon Co. s,goo
lots! ■ .'•,''.107, 000.
In order to Me this v;o ’.Tore oenpoinod to held up
MOO ,000 in oar rcjnlar and discount accounts nnyatslo , and in
addition to this -re are nor? holding up irregular uecounto {in-
cludin;; Cnlirinr:; Holden, Montan V'c:: and Eastman Modal': Co. )
argentine to §65,216.94, cr ay -.vorzlrr.tcly §150,000 all told.
In holding ,up a discount account wo of •course lose money, end
in holding up Other accounts re to a certain extent hurt 'our
future credit with these people.
For the nonth (April) wo estimate that wo will
The earthquake and other circumstance
draw from the handling of the Edison
and I am happy to say that my entire
will be covered, with interest. Your
trusted me, and for -feery large amount
s have obliged me to with-
goods in a wholesale line
indebtedness to your Company^jj*
people have at all times ’JjL.
s at that, and I have proved
faithful to my trust.
I am proud to know that I have been instrumental in building up an
excellent Edison business on the ■pacific Coast, where nobody would
take hold of it at the time I started in; it was considered a
street-faking business. I believe that the large trade which your
Company now enjoys in Australia and South America was built up by
myself. I am sorry to say to you that, after 40 years of hard
work, it is my belief that when X have settled all my accounts, I
will have nothing at all left, although I can say with satisfac¬
tion that I have enjoyed my life as t went along. I*-think I have
had everything that is coming to me and have no regrets. I have
helped a great many people to get along and make money, carried a
heavy family load and done it with pleasure.
I still hold you to your promise to allow me to show you San Fran¬
cisco. It does not make any difference whether I am a wholesaler
or not, I know every street and alley and every place that you
would like to see.
I have met in San Francisco quite a number of peo pie who handle
Films and have been reading the Film papers and firmly think
there is going to be one grand bust-up in the way the Film busi-
[ON BACK OF PRECEDING PAGE]
/^aiTa 'i mm A
I 0161 si ddV |
. . ~y~\ — •
■t It UJ Jo csto 6
cfee*-^ \^0-L. tn.
4- u> C-'.j 1A cTIw-t*
lW,
^rTG^ u*w fcO-e^y
V
T.A.E.-2.
ness is handled on the Coast. People are not as loyal to you as I
have been and if the time does come when your Company wants a
good, honest representative I offer myself - although a little
aged, still in the ring. X have the personality, friendship and
connections and would look out for your interests better than
anybody else you could select here. Please dpnt forget me when
the time comes. I know j have a friend in you and that you will
remember me should the occassion offer.
T wish to thank you no w for many favors I have received, which,
while not direct, I know came through you. I assure you I appre¬
ciate them and can never forget them.
T will still handle Edison Phonographs and Records in a small way
as a retailer for a while at least.
With kind regards and well wishes, I am,
•SAN FRANCISCO. CAL.
IONE DOUGLAS 571
941 MARKET STREET
TO OUR EDISON DEALERS & FRIENDS:
and stock as^olSler^in mson^Sines^Recor^ °Ar 800d-wm '
Supplies to the r.acnines, Records, Accessories and
Pa0lf£LP£onosraph Company,
941 Market Street
to take effect March 16, 1910,
that date!'* 0?dSr?J«fnf }n°3S” *tZ §*ven us up to
April Records will be filled bv L ^S° standing orders for
2S“a
fivorsWienPthe°past° °andbagainitha^inf yo'^for
Yours truly,
PETER BAOIOALUPI & SONS
National phonograph company
Fir. Ehomao A. Edison,
Fort Uyors, Florida..
Scar :ir. Edison:
I an Just leaving with YTllson for Schoncetauy
to go through tho Gonoral Electric plant and coo what Find of a
sycton thoy have thoro .
Elio situation as to finances , so far as I havo Soon
ablo to go, is at tho pros ont tine as follows:
Xi/.30FAE OF.Y
\7or3: has Soon stopped on the 20 nickel,- filling maehinoc.
Ehio ought to reduce oxponso, because Fachnan tolls no that practi¬
cally his onti.ro force has Icon working on this Job. If ho" does
not let some of his non go to reduco- oirpenno, it will at. least
holp out Schiffl vory ■ materially , because Schiffl's work has ncorun-
ulatcd to a largo cy trait ail 'part of j.t is being done down horo.
3 AT IFFY COyAiTY
I tun glad you agree to a discount of 20$ to manufactur¬
ers. .Shis ought to make the proposition very interesting to thorn,
and Foe is oven moro optimistic than usual. Ho scons to think
that 10$ discount to GaragoS will be onough to satisfy .thorn. At
least, wo can start out with this discount and if necessary in¬
crease it lator. It would ho more difficult to re.itco tho dis¬
count to 10$ if wo onco started at 15$ than to roverse tho pi-o-
2 4/13/ 10. NATIONAL PHONOGRAPH COMPANY T • A. lOlilOOll.
cods. Both Dodeo and Boo strongly oppose roduoinc tho output to
700 oclla pox- wool: fox’ tho following reasons:
.(1) Tho rnnuf act urine oost would ixioroaco so that
tho hattorioo would havo to ho sold at an actual loss. By nahinc
1400 colls per wool:, tho cost Is low onov-Gh to coll practically
without loss, even though tho c00do sell slowly. At loast , the
situation can run on until you rotum. V/o arc oinply aocunulat-
1 ne a stool: of salable c00^ on which a profit, or at the worst
a very snail loss, will ho nado.
(2) By outtinc down tho output v/o would havo to lot
non g° who havo had onpox-ionoo and who ai’o of value to us, and
later cn if tho output was increased wo would have to broad: in
net/ non. This would bo oupcncivo .
(3) To cut down tho output and lot non c° v/onld havo a
bad offset in tho trado , and tlio Load pooplo would no doubt oir-
culato tho old otorios that sonothinc uas tho raattor with tho
Kf- icon battopy.
Vdxon I sorioucly bocan to ccncidor tho ouoction,
realising that v/o v/oro mckinc salable goods and ac oumulat inG then
in stool:, it occurred to no that tho Battery Company oucht 'o bo
able to finanoo itsolf, without lo oleine to tho ?honoeroph Conpa-
nios for help. I have taken up tho nattor with tho Orango
national Bank and have explained tho nattor to thorn, and they
havo acrood to loan tho Storaco Battery Company §30,000 on its
notes endorsed by you. Shis oucht to carry tho Dattory Company
for oorno tino. If wo find t'nat this is not onouch thoy will bo
villinG to loan §30,000 moro on tho notos of ono of tho other
compnnios ondorsod by you. Undor this nrrancomont tho drain of
tho Battory Company on tho Phonograph Companies win bo rornovod.
3. 4/lS/lO. NATI ONAL phonoGraph company 2. A. Udiaon.
With tho osb ro diacounta v;o am of ferine and tho advor-
•bieixte v/o arc doinc, and tho inoroooo. in intoroot of tho public
in tho battorioa, thoy ought !.o bocin novine by tho tino thcao
croditB arc ordiauatcd. Wo aro rocoivinc fairly c°od Shipping
ordoro and Boo nan tho Adana E:-mrosn people and thoy Kill give
ox-dors to ahip 2600 colla probably thin nook. In other reapocts
Dodge undex-at suds tho cit nation and v.-ill naho every effort to
i-un alone ao caonomically aa poaaiblo.
CE'.I':;ig COiPAITY
I have had a number of talks v/ith Mr. Mo-llory and 3iavo
ouplaincd tho situation to lain. He tolls no that the roaaon for
thoir hoayy denands for April ia that in March their coal and
freight bills wore unusually high owing to tho thx-oatonod atriho .
Ho roeards conditions oo boi'iig very encouraging, hut v/ill cut
do-, n osponoo to a minimum and nillslon up on tho work at tho
Haub Quarry. Hov; effectively ho will do this I oannot cay, hut
at least this situation can wait until you return.
LOAMS'
In order to -Garry us through tho Sunmor Mr. Millor and
Mi', ifbetoo both think that unloss tliox-c is .--ono unforosoon improve¬
ment v© may nood, aa much ac .$400,000. : . Mr. Solxooror of tho Union,
national Bank told us that lie boliovod bnnl:ing arrangements could
bo made in Hov/ York to socuro tiiis aoconnodation, and ho suggested
going to tho national City Bank, v/hoso. poonlo ho known,' and sound¬
ing thorn on this matter. • ilo has not yot don© this, but promises
to do ao to-day. His idoa nao that hy putting up collateral for
$200,000, a largo Bank nould loan uo $200,000 noro on tho Company's
notoe, hut v;3iot3ior a lion York Bank v/ould accopt Phonogi-aph Works • -
4 4/13/ 10 .NATIONAL PHONOGRAPH COMPANY '!' • S'— EdlBOXl.
■bonds ao collateral I do not Jsiov;. Unlooo a financial oataolism
ocourn, I do not ace how v/o oan fail to obta'n ouch acoomno elation •
ao v/o may nood, particularly oinco wo will ho uoinc tho nonoy to
pnodhcaosalablo goods which will ho cold in tho Pall. Our
ontiro haul: loans (ozolusivo of tho Cement Company's notoo) aro.
loss than $800,000, and tho combinod surplus of the various com¬
panion is upwards of $5,500,000.
330112) ISSUE .
It sooms to mo that tho solution of our financial prohlon
is to issuo about a million dollars in bonds aftor all tho com¬
panies aro consolidated. ■ This would allow us to taJ:o up all of
our loans and provide a sufficient working capital. , LIr. Sohooror
told us that on tho strength of our financial ‘showing thoro ought
not to ho aiiy difficulty it all in soiling a million dollars in
bonds at not loss than 90. Elio bonds could bo rodoomod in
contain amounts oach yoar so as to gradually roduco tho issuo,
and thoro could bo a provision that at any timo they could bo
rodeemod by lot, cay at 105 and accrued into root, so that thoy
could all bo wipod out if noccssary. Dy doing this v/o would bo
absolutely independent' of tho Banks so far as working capital
is concomod. •
Thoro v/ill bo no nood of your coming back boforo you
plannod, hocauso I fool suro that everything will -go along all
right. ■
TLD/lRW
Yours vory truly.
Dyer: 4/26/10.
As it is settled that wo will go ahead with the new record
without feed lino in the center, the following questions come up
and should he decided without delay, 00 that the Recording Plant
can start the catalogue and we can start making moulds :
(1) What will he the dividing line as to the clasB of
selections to ho put on the 10” and 13”?
(2) Assign hlooks of catalogue numbers covering differ¬
ent languages as well as price, loaving the numbers 1 to 5000
unassignod, for factory to number the mother moulds.
(3) What class of records will bo double side records?
(4) What will bo the design of label? Chat is, will
it carry the restriction notice or not? 3hall wo use a picture
on it or not? Will the price bo on tho label?
(5) Shall we uso different colors for different price
or for different class or for different size only?
In order to bring before you a line of thought to work
on, I would suggest answors to the following questions as follows:
(1) All solections made by ordinary talent to be made
on 10”, all others on 12”, thereby malting the 12” record one of
quality as regards the music contained thereon.
[3t) 10"
5000 to 15000 American
15000 to 18000 British
18000 to 20000 German
20000 to 22000 Crouch and Bengian
22000 to 26000 Spanish (Including Mexiaan, Cuban
Argentine , etc . )
26000 to 26500 Italian
26500 to 27000 Hebrew
27000 to 27500 Swedish
27600 to 27760 Bohemian
27750 to 30Q00 Miscellaneous (Banish, ITorwegian,
Butch, Hungarian, Polish, Chinese,
Japanese, Hawaiian).
30000 to 40000 12" Hot Grand Opera
40000 up 121' Grand Opera.
(3) All selections by ordinary talent, but when copyright¬
ed selections are used the reverse side should be trum* ono not
copyrighted. All 12" not Grand Opera.
(4) Matter for Legal Bepartment to decide.
(2)
is, one
(6) Ubo different colors for
color for Grand Opera and anothe
different class only — that
r color for all others.
sffs&fsw&j: srL£.«“ *« -*2fa sa*
E. i. Alton.
April 2G , 1910.
Ur. Potor Bacigalupi,
941 Market St . ,
San Francisco, Cal.
Door Ur. Bacigalupi:
Yours of the 2nd inst. to Ur., Edison has toon
roforrod to mo after ho had ondorsed there on an answer, which J
pro aunc was cent you by hie Secretary.
In the winding up of our relatione with you ao a job¬
ber I was -in constant touch with the matter, and I can assure you
that we did all that wo could to help you consistent with what
wo thought to bo our responsibility to Ur. Edison. "Personally
I do not' know' you .very .troll,- but 1 havo found that you have many
friends hero, all of whim ontortuin for you foo lings of apprccia-
. tion.
Our representation on the. Pacific Coast' co far as films
aro oonoorned is enito satisfactory and I think wo- aro' getting our
share oftho business. I would not bo disposod to change unless
I' was shown- that -the facts woro othorwiso. If you will write .
mo more in dotail as to onset ly what you have in mind and what
you would propose to d- , I will give tho matter caroful consider¬
ation.
Beliovo mo always, .
FLS/im
Yours very truly,
Prosidont
i n e g a a k,
Hay 3, 1910.
lieutenant Ernest H. Shaokleton,
Indianapolis, Indiana.
Vlotor Talking Machine Company of Camden, Hew Jersey,
announce a Record made by you, of your South Pole trip, to go
on sale with their June Records. Ihi3 is contrary to our
exclusive arrangement with you.
Kindly advise us by wire, followed by letter, so that
take stpps to protect ourselves.
HASI0&&L PHOfiOCSRAPH COiiPAHY.
we may
PAID
CEC
Copy to Mr. Dyer.
- Aj
[FROM C.E. GOODWIN]
1'
C.
G.
Kay 6,
1910.
Honorable Ernest H. Shackleton, *
^Ghieggo, Illlno^sv. |
Sir: *7^'
Your kind letter following a telegram, in reference to the special
Record you made for us, is at hand, ana we have sent you another wire,
reading as follows:
"Before Record is marketed here by Victor Talking Machine Company,
Camden, Hew Jersey, kindly write them voicing your protest. Advise
us if they agree to withdraw Record. Think you should telegraph them
also."
We believe that if you have taken this matter up with the Victor
Talking Machine Company and the Gramophone and Typewriter Company, ltd.
of London, steps will be taken to withdraw the Record, or recompense
us in some way so as to relieve this Company of the embarrassment of
having advertised our exclusive arrangement with you. We are. very
glad to have your assurances that the doubtful enterprise of our com¬
petitor is wholly unauthorized, and we believe that the matter should
be of enough Importance under the circumstances, for you to insist
upon their stopping the sale of the Record.
Hon. E. H. Shakleton,
Kay 5, 1910,
Pago 2.
Vte slnoerely regret that anyone ongagefl In our line of manufaotur/>v^.
either In this, or any country, ah ouia violate the oonfiaonoo of no
aistlnguiehea ana worthja person as yourself.
7/e hog to remain.
Very rospeotfully yours,
She following statoment covering onr advertising for 1909-10 has hoen
prepared for the puipose of discussingadvertising plans for 1910-11. It
is somewhat difficult to make comparisons and to give exact figures, be¬
cause it hns always boon our custom to consider our advertising year as
beginning with the October magazines, bringing part of our advertising
expenditures in one fiscal year and part in the next; and the only figures
we have are those given by our department record of bills approved by
the department.
Our department reoords show that during the fiscal year 1909-10 we
incurred expenditures and approved bills for the following amounts, which
are the items that may be considered as advertising and do not include
expenses incurred for other departments:
Magazine Advertising
Newspaper Advertising
Farm Paper Advertising
Religious Paper Advertising
Trade Paper Advertising
Outdoor Advertising
Bahson Bros.
Printing, Postage, Etc.
Newspaper Advertising
Religious Paper Advert! si
Trade Paper Advertising
Outdoor Advertising
Babson Bros.
Printing, Postage, Etc.
58,000.00 ' ^
2,000.00 ' <■><■
G, 600. 00
24,000.00 .'V* ^
45,000.00 ' 1
1S5.000.00 _
Tho item of newspaper advertising is part of the present season’s cam¬
paign. The estimate really makes no provision for newspaper advertising next
The item for outdoor advertising is larger because of the contract we have
made for tho "Leaders of the ',7orld" electric sign on Herald Square.
Tho Babson Bros, is larger because of the increased allowance.
7/e may be able to make a saving in tho cost of printed matter, for allow¬
ance is made here for some special Grand Opera printing not dome last year.
For instance, we have iii contemplation a catalogue that will cost from $5,000
to v5 ,000, according to the size of the edition.
.Our business in the United States in 1909-10 was approximately $3,070,000.
If our total expenditure for advertising and printing were kept within ten perceitt
of the total volume, as you suggest, we would have .*507 ,000 availabe for this
purpose. Deducting the above estimate from $307,000 leaves $67,000 avilable
for magazine advertising for the entire fiscal year.
X think that it will be unwise to reduce our magazine advertising from
$125,000 to $67,000. To do so will bo to make on admission to the trade
and tbo public of the state of our business that could liardly fail to make
matters worse. It will not be easy to explain why wo have decided to drop
out of newspapers entirely. It will bo almost suicidal to show the white
feather in magazine advertising. Bear in mind that while the Babson
advertising costs a considerable sum, our regular businoss gets no credit
for it from either the trade or that part of the public that compares tlB
advertising dono by the Victor Company and us.
Our $07,000 would be. compared to the following expenditures by the
Victor Company:
Magazine $125,000
newspapers 75,000
Farm Papers 25.000
$225,000
These are about their expenditures for 1909-10 and unless they also de¬
cide to retrench they v/ill spend as much in 1910-11,
The least that we ought to spend for magazine advertising is $100,000
which would run our total up to $340,000. I greatly regret that we cannot
go on with newspaper advertising. I admit that itdid not bring the in¬
creased business in 19(59-10 that we had hoped, and had ever reason to ex¬
pect, but I believe that its partial failure was due more to the hard time
than to the weakness of the advertising. As you know, our Jobbers and Dealers
are apathetic and discouraged because business is so si or; in returning,
and if they find us timid and distrustful of the future their feelings will
be aggravated. Of course, if the profits v/ill not permit such heavy expend! -
turesfor advertising, we must cut down and do the best v/e can regardless of
unfavorable comparisons or the effect upon thetrade.
In tho foregoing I have made no allowanoe for any advertising or print¬
ing that may be necessary to exploit the n ew product, nor for any special
advertisings push Grand Opera Records.
. I had also hoped that at least $10,000 additional might be had for trying
out a plan of getting out a greater variety of printed matter for trade use
and of giving our good dealers a more direct and more efficient service in
connection with it.
<00’
lorV
Company
%
National Phonograph Co.,
Orange, II. J.
Gentlemen:
We notice that in your "Phonograph Monthly"
for May, you announce. .Shuc’kL et on 1 a exclusive services,,
stating that "he has agreed not to recite his experiences
in the South Pole region on any other talking machine
record. "
We fear that we have reversed the "Lauder"
incident in this case. We are issuing ShacKLeton's
records in our Jtine supplement.
Lieut. Shaokleton's Manager, Mr. Reid,
of Regent St., wrote Shackleton on May 10th, from
London, reminding him of permission given The Gramophone
Co. to issue his' record for public sale. The Gramophone
Co. have witnesses to the agreement.
Lieut. Shackleton telegraphed us from Toledo
0., on May 6th, as follows:
"You have no authority to put record on sale.
Only firm National Phonograph. Distinct
understanding in London record made not for
public sale. Shackleton."
We presume this telegram was sent at your
instigation.
We are addressing a letter to Lieut*
Shackleton in your care, which you will please forward
immediately to his address, as we are not in possession
May 16, 1910,
Victor Talking Machine Company,
Camden, Hew Jersey.
Gentlemen
V/e duly received yours of May 12th in reference
to our advertising the Shackleton record as exclusive, and
v/e have forwarded the letter enclosed therein to Lieut.
Shackleton, as yo\} desired.
We have Lieut. Shaokleton’s assurance over hiB own
signature that the records he has made for us are the only
talking machine records ever made for public sale, and that
•he agrees to make records for public sale hereafter only for
us. 'fhiB statement, we believe, furnishes us -with a perfect
foundation for our assertion that Lieut. Shackleton "has
agreed not to recite hiB experiences . in the South Pole re¬
gions on any other talking machine record". Indeed, it ap¬
pears to ub that we might have gone much further and have .
said that our records were the only talking machine records
which Lieut. Shackleton had ever made. for public sale. Under
the circumstanoes „ we expect to make further allusion to •
having exclusive privileges on the Shackleton record.
Lieut. Shackleton has Btated to' us in writing that
the reoord which he made for the. Gramophone people in London
is not for public sale, and we note that Lieut. Shackleton
NATIONAL PHONOGRAPH COMPANY
-2-
Victor Talking Maohine Company.
has also notified you to the same effect. We presume that
you will not question the honesty of Lieut. Shaakleton, and
it would seem to us that, in deference to his belief that
the record made in London was not to be offered for public
Bale, you should withdraw it from the market.
Yours very truly,
CHW/ARK. General Manager.
Messrs. Dyer, Wilson, Westee and Buehler:-
X understand that the
arrangement we have with Mr. Shackle ton is that we pay him a royalty
of 2^ on his record made for us some time ago, and that he would not
make any similar records for any other company on this subject. He
explained, however, that the Gramophone Co. had already made a
record by him which he said was not to be used for commerical
purposes, but was to be filed in one of the museums. He also
stated, however, that should this record be used for public sale
he would forfeit to us the 2% royalty. This record has been listed
by the Gramophone and Victor companies and has been on public sale,
so we need not pay him the 2$> royalty. This is the arrangement I
understand Mr. Dyer made with him.
W. H. Miller.
r;- F' sr-uu-
(Goflinpaxmty . . ~~
CAMDEN, n.j.u.s.a. May 27, 1910.
national Phonograph Company,
Orange, II. J.
Gentlenen:
Replying to yours of May .16th, heg to
state that v/e cannot reply to you as satisfactorily
as we would like to, for the reason that our letter
sent to Lieut. Shackleton, in your care, was returned
to us. V/e have re-forwarded it again, hoping it may
find him.
V/e heg to state, however, that there is no
question whatever hut that Lieut. Shackleton gave per¬
mission to The Gramophone Co. to issue his record for
sale. This they did hy circular on August 20th. They
also advertised the fact in the press.
What Sir Ernest is prohahly thinking of
is that when he made the record, he stipulated that
it should not he issued until after he had lectured
(if our informant remembers correctly)before the King
and before "The Royal Society."
There was also a question of a public
subscription being raised, and he was Bhy of having the
Gramophone record issued at that time; there was
always an understanding that it could be brought out a
little later on.
V/e have witnesses in both our representative
and Mr. Shackleton's representative of the permission
given to publish the record.
Under these circumstances, we must refuse
to withdraw the record from the market, and you will
Co. “Folio //■ 2 IT. P. Co.
certainly place yourselves in a ridiculous position
hy further claiming or advertising your exclusive rights
As stated in our former letter, lieut.
Shackleton ' s agent has written him, and we incline to
the opinion that he will correct his position with you
upon receipt of that letter, as -well as our o wn.
Yours very respectfully,
LPOr/pH
c/o Hotel Gotham,
How York City.
Juno 2, 1910.
/
Doar Sir:
Furthor roforring to tho question of our having oscluslvo
rights to tho oalo of your roeorda in this country, wo hog to onoloso
horowith copy of lottor rocolvod from tho Victor Talking Moohino Co . ,
datod May 27th, whioh will osplodn itoolf , and inform you as to tho
position thoy tdko in tho matter. Won't you kindly advioo us at onoo
as to what furthor stops, if any, you propose taking to protoot us
in what wo oupposod wore oxclusivo rights. Wo have found that thoy
actually put your records on sale through thoir Dealers and Jobbers,
on Hay 28th, whioh, of course, -yeloasbs us from any obligation to pay
you royaltios originally agrood upon.
fours very truly.
1
General Manager.
47 NY N 81 050PM
Winnipeg Man June 3-1910
National Phonograph Company,
Orange NJ.
Manager has not written today I gave permission public sale -I never
have. You are within your rights advertising exclusive sale all I did
was to allow Victor to supply anyone who wrote direct for records.
This was so that my friend oould get it if l had made aontraot .
with graraaphone aompany, it would not have been verbal X am not
philanthropic enough to give a business house such an asset free
Address me care Allan Company steamers Montreal.
Sohaokleton,
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June 2 Z, 1910,
Mr. Edison:
1 have read your memorandum of -the 22a Inst., which web
addressed to Messrs, Roller, Dolbeer, MoOhesney and myself, ana
also Mr. MoChesney's reply to it.
You are getting around to the right Idea when you Bay,
"The proposition that we make the dealer is that we give him three
or four months credit'.' This, I believe, is the kernel of the
whole situation, hut you must realize Mr. Edison, that "Y/E" are
not selling the dealers, hut on the contrary we have always let
the Jobbers and Dealers market our goods, though under rather
presoribea rules,
Dow we might extend oredit (on maohineB only), to a
oertaln class of dealers and Jobbers, who would need it to follow
out a liberal selling plan whioh we might get up here, and only
in consideration of it being carried out to the letter. If this
is done, you will find that it will not be neoessary for us to
"butt in" any further than to demand that in consideration of the
extra terms they are to follow a plan whioh we oan map out here,
made up on the experience of the successful Jobbers and Dealers,
that cannot fail. In short, "Mr, Jobber and Dealer, if you
will follow this plan (one that we oan outline in all its details,
that will be sure to win), we will fix it so you oan have the
machines, and do your part in carrying out a sohema that is bound
to make good.
It is my idea that if we were oareful la our selection
of the dealers, and would instruct, baok, and insist upon their
following a known successful plan of selling, we could develop a
selling machine that would be going at it right all the time,
and would, in its way, be as successful aB Eabson Brothers',
C, E, Goodwin.
July 19, 1910.
Since you have hinted at some of the schemes that might
he brought up at the meeting on V/edne3day night, and desire to
make use of all the data and information available at that time,
I have thought it would he well for mo to write out my views on
the conditions that confront us in the conduct of our Phonograph
business.
Starting with the self-evident truth that a line either
■goes, or it don't, and asking' ourselves what about our line, we
must admit that it don't. Either relatively as compared with
the sales of our competitor, or actually, considering the cost to
get what business we have. I have been considering these
matters very olosely of late, and I am getting over my damning
of the jobbers anrl dealers for theit apparent helplessness and
lack of interest. Che first thing under the present circum¬
stances that anyone in our position is prone to do, is to rear
up and curse the dealers for their lack of faith and loyalty to
what may have made many of them well to do, and while I admit and'
know that many of our dealers never were qualified or competent
to reach the market successfully, yet I see every day in the sales
men's reports a condition of affairs among successful and intellig
handlers of merchandise, that requires further study, and they are
not to be dismissed by attributing the general trend of things'.to
apathy, or a cowardly ^difference. There are a goodly number
of loyal and admiring friends who are at a standstill with the
cylinder product, that don't need to be told how to market goods.
- 2 -
I take it from conversation with you, in which I have
in a measure concurred, that you feel the rank and file of our
dealers and jobbers have come to the end of their string in the
matter of expedients and schemes for the promotion of the business,
and that it is now up to us to resort to the unusual in order to
go on with the distribution of our product. Just now we are
inventing schemes for practical business men to carry out, rather
than new things, that would tell a new story of themselves, rou
oan set it down for si fact that when an article has been successfully
handled by the1 best prioe maintenance scheme that the business world
has ever known, and then runs into a let up that ours is having, ■
most of the legitimate promotional schemes have had their, try-out,
and' when you feel as. though you would like to take it out of the
hands of the hitherto successful, and run it on some plan probably
a great deal more costly than your present handlers could afford,
you are nearing the end of your string.
Mie fault is not with the profits in our line, speaking
in a broad sense, for on paper. they are much greater than those
made on the Kodak, the Gillette Razor, and several other going
specialties. In short, the profit prize, together with compe¬
tition', is, and always has been large enough to develop the highest
efficiency as far as sales plans are concerned, and anything that
takes you outside or bnyond the present alluring profits held out
to legitimate, dealers^., for an alternative, will never' save the day.
The legitimate dealer’s present troubles would soon be yours.
There must bo something wrong with our present product.
To the big buying, everyday, newspaper reading and money spending
nmerican public, our present product no longer makes its appeal.
There is no denying -this fact* With thousands of dealers exploiting
the machines, and over a million purchasers who have showed them
off to their neighbors and friends on every possible occasion, it
is all rot to assume that we haven't had a good start, 'anyway.
The mere fact that it is feasible and profitable to take a wagon
load of our present Phonographs out into the rural districts, and
have that practioe mark the greatest success that any of our dealers
are having, simply proves that our beat market is where people see
and hear the least, all of which to a healthy and going business,
would bo in no way encouraging.
let us see if the present system of Jobbers and Dealers
is wholly unsuccessful, even when carried out With less of the good
will between manufacturer and the trade that has characterized our
history. X find that the Victor Company has followed our foot¬
steps in the matter of price maintenance agreement: s and general
selling plan, as far as jobbers and dealers are concerned, und as
much as wo would have it otherwise ,' they have no reason for complaint.
Wow, if they can rush their factory to full capacity on the same
.selling plan that we have, it is no argument against that selling
plan to say "Oh well, they are selling their goods in the cities",
for when you can make your line go in the city, with a public that
is supposed to be satiated with every variety of amusement as a
competitor, you certainly have got the goods, and in time they will
go much easier and faster in the. country. Have we got the goods?
Er. Edison very rightly says that the thing which sells our com-
petitorb machine is the fact that each one placed makes the owner's
neighbors envious, and they go out end get one. I have always
been confident of this, and while I believe that a general pub-
- 4 -
licity plan is always necessary in connection with marketing an
article, real success begins when the scattering sales directly
tracable to advertising, begin to sell other machines themselves,
Kr. Edison is on record on this theory, and it was also borne out
in my observations during my retail experience. Each machine
sold brought in more customers, and^ when you get a machine that
brings you customers, all you need is fairly respectable and intell¬
igent dealers, who, if selected with ordinary care, should properly
display and distribute on a scale that is quite satisfactory. If
the theory that each machine sold creates a desire to buy, is in
any degree a help in the solution of this problem, what are the
1,200,000 machines that we have outstanding, doing for us? Are
they propogatiug their species by exciting an uncontrollable desire
in the hearts and pocketbooks of those who come to their owners’
homes and must hear their best efforts before allowed to say good¬
night? I am afraid not. I am afraid that the present demand
doesn't even show a moderate disposition to "increase and multiply"
hy this method. I fully believe that these outstanding machines
should be doing more for the cause.
II ow before we fly off the handle, and create a suspicion
in the minds of the trade that we are working to ends that make it
impossible for us to treat all alike, let us see. what_ something
radically new is going to work out for us. My observation of
Mr. Edison yesterday, in a conversation down in the yard, is the
key-note to the whole situation. leaning against one of the
wagons, his face lighted up when telling me of his visit to the
plant at Glen Hidge. His enthusiasm over what the new material
is making possible over t lie re ' simply 'Shows me what effect it will
have on thousands of our dealers. They are going to take new
life and interest, and they are hound to sell a lot of these new
machines. Those who hear them are going to buy because of the
new interest they create. As "Scotty" would say: "That’s the
whole story".
This does not call for any less enthusiasm in trying out
the proposed wagon scheme, for it is clearly shown that a certain
field canvassed in this way, will be productive of good results.
The proposed trial of a doaen wagons will clearly7 demonstrate the
advisability of the plun, and in what proportion we should enlarge
it. In order that it may he proven to the utmost, I think it
advisable to let our salesmen go with the wagons for a time”, to
report to us for advice, so that we can be posted as to the actual
workings of the scheme.
Goodwin.
July 21st, 1910.
2®
Re. additional out-out llBt.
lal. the traa® °n August iEth,
1910, that 850, two minute reoords will he omitted from our
catalogue as of August 16th, 1911, ana that In the interim
the trade are to use their utmost endeavors to dispose of
their stook on hand of these partloular numbers.
We will also notify them that we will permit them to
give away any nine (9) of these records to any bona fide
owner of an Edison Phonograph who effeots the sale of another
Edison Phonograph, this in lieu of the six special Amberol
reooras which are now being given away under our oertifioate
, ^ 3!£l8 J? ?e handled by an addenda to the oertifioate now
in effect, whioh will oover the matter very fully,
Shis announcement to convey the Information that on or
about August 15th, 1911, we will offioially notify the trade
as to the disposition of the balance of the 860 list then in
their hands, whioh will enable them to dispose of them without
jloss to tneznseiYea*
Shis plan contemplates the disposition of future cut¬
out records. Our action as regards additional out-out listB
to be governed by th^ way this first list is handled.
Shis Bhould be oarefully considered, and our decision
announced to the trade at the earliest possible moment.
. . + ^
m?5 " Mr*„Edls?n5 Mr* Wilson; Mr. Wm. Pelzer; Mr. Weber;
Mr. MoOhesney; Mr. Stevens; Mr. Berggren. ’
Mr. Aylsv/orth:-
Mentioning the Baekeland patents to Mr.
Edition laDt night, 1 told him that one of the patentB appear¬
ed to cover a oomposition in whioh there was a large per¬
centage of wood pulp in the o<e*itre and a smaller percentage
on the outside. Mr. Edison suggested that the same percent¬
age of wood pulp might he used in the oentre as well as in
the outside, hut that some additional material might he
used in the oentre. You might discuss this matter with Mr.
Smith and see if it has any importance in connection v/ith
this particular patent.
E . L. 1).
ELI)/ ARK..'
Messrs. V/ilson, Uolbeer & Goodwin:
In order to make a reoord of the queBtionB dis¬
cussed laBt night with Hr. Edison and tentatively agreed
upon, subject to confirmation or modification, please note
(1) Hr. Edison will take up with the Engineering
department the possibility of no making the drawers of the
Amberola cabinet that they can be used either for disk or
cylindrical reoordn. If this can be done Pooley will be
given dimensions, and will furnish one sample as coon as
possible for approval. After approval of sample, Pooley
will be given shipping orders for 1000 mohogony and 300
oak cabinets now contracted for, deliveries to begin as
near October 1st as possible, and oor.tinued at the rate
of 500 per month.
(2) V/e are to make six sample disk cabinets,
three of thorn to be sent to three different manufacturers
with requests for priceB in lots of 100, and if the prices
are satisfactory, place orders for 100 cabinets with each
manufacturer, we to retain the other three cabinets to
make comparisons with when received. If a single cabinet
for comparison will be enough, then, of course, only four
cabinets need be made.
-1-
7“ 'T . : . " ' ' '
NATIONAL PHONOGRAPH COMPANY
(3) The Engineering Department will bo immediately
inetructed to design a suitable cabinet for a (SCO disk na-
ohine with horn, ut onoe, with the view of making them in
our own plant. As it will tales tv/o months to got lumber,
it should be ordered at tho earliest possible moment.
10,000 cabinets will bo needed.
(4) Circularise tho entire trade on the new disk
machines when wo are ready to put them out, advising them
if jobbers do not carry machines to send orders direct to
us and that v/e v/ill fill them. .
(5) When disk motor is finally approved, issue
manufacturing orders for IK, 000 motors, placing orders for '
raw material, so that beginning November 1st they will come
through the factory at tho rate of Goo per. week.
(C) On the Bubjeot of the return proposition and
permitting cut-out two-minute records to be given away as
premiums instead of special, Araberol records, Or. Dolbeer
is to prepare the neoessary announcements to be approved
before sending them out.
On the subject of canvassing by special v/agonB
to b e rented out through. jobbers to a selected list of
dealers, the following figures were prepared to show what
was regarded as the minimum business to be done by each ■
wagon j
-2-
KiVjir/nccm' liY us (14 wagons)
25 machines) t, :>15.c;0 ~ $378.00
25 doss, records £.: (; 2.00 s 52. 50
1 wagon 1 month. 0427. 50'“
14 wagons
Oi'/io.ob
4275 0
55)05 00
3 won'thB
4)17955.'
1''. L. jjyer
(Copy to Ur. Edison)
NATIONAL PHONOGRAPH COMPANY
c/jiVAM'i.vai skuas -
25 Bittchinon per month average ;;30 each = 0750
15# oomiooion ss§112 .50
25 doz. recordu Arabcrol and •£■ 2-min.)
average #5 per dozen ss 125.00
10pS oormaioaion ~ 15.75
0112.50 + 010.75 s 130.75
Cost for hoard - 30 days Hi 01.76 = 52.50
0130.75 - 052.50 = 070.25 1TO1I KOH :;0HTH
UK All'll MAKES
records
PROFIT
15/' to Agent 0130.75
Kent of wagon 2.50
11 " horse 15.00
0148.25
JOhDun makes
03,00 each on 25 nachinos
.90 per doz. on 25 doz. records
. 0300.00
: 30.00
. 22.50
0352.50
148.25
If204.25
, 075.00
: 22.50
012. each on 25 Machines
2.40 per doz. on 12-2.- doz.
1.80 per doz. 11 " "
)jU*v . -
July 21st ,1910 OfBt JUh
\Wflj mni j
Please let me have, by Tuesday of next week, a memorandum
from you suggesting any changes, improvements, corrections or
additions that, in your opinion, should be made in the next
issue of our Phonograph Catalog, a copy of which is enclosed
herewith.
We must have a new catalog ready for use of the trade not
later than the middle of September, and to do even this the
work must be put in hand at once.
L.C.MoOhesney.
Mr. McChesney:-
Heplying to your memorandum of the
21st inst., 1 suggest the following:-
(1) . -The statement on page 2 in Mr. Edison's
writing must have been written very hurriedly by him.
1 think he ought to write this over again.
(2) The descriptive matter commencing on page 3
should he elaborated, bringing out more strongly the
talking points of our maohine and reoords, particularly
that the up-and-down or phonograph cut, with the sap¬
phire stylus always closely engaging it, gives better
and more natural reproduction than any other style of
recorder. Also, ^ that with cylinder reoords, the surf&ce
speed is always constant, giving more uniform results.
Why not state that when the German Government wished to
make records for the German Museum, in order to preserve
modern languages of dialeots, it selected the Edison
Phonograph as the best maohine for the purpose. Also,
that the JSdiBon , cut record is the only one that has ever
been used for stenographic or dictation purposes, indi¬
cating that Buoh a reoord gives the best results. Also,
bring out strongly the fact that with the Edison oylinder
maohine, records carl be made at home, adding greatly to
the utility aind attrao^tivenesB of the phonograph. I
think this introduction should also make a strong play
#2- Mr. MoChesney.
of tho fact that Mr. Kdiaon is the power behind the
Company and gives the design and improvement of the
phonograph almost constant attention.
(3) I presume you intend to include in the
catalog the new v/ooden horn outfit.
(4) Heference to the Model "O" opeulcer should he
made on page 25.
I1. L. D.
KLD/ ARK.
NELSON GOOI
lx
O/o Edison Mfg. Oo.
Several times X have endeavored to communicate with
you by telephone but have in each case been told that you were occu-
pied. or awey. I have therefore requested that you would call me up
on the telephone, which your people answering the phone promised to
dq. Apparently my messages have never reached you, and I would like
very much to have you investigate this matter and find out whether or
•' not\ it is possible to communicate with you by telephone.
to fh* ti Trm +Th| about which I to see you are in reference
to the payment of my bills as per terms of our contract for the gener-
S0.ld y°ur °ompany, also the matter of the small light for toy
outfit, besides other matters in reference to batteries and the
Oxygen and Welding business.
. 1 have been so exceedingly busy with the incorporation
of my Companies, etc. that it has been impossible for me to come to
orange as I had hoped. X wish to come out sometime and see your
welding plant, but I trust it will not be necessary for me to come
in reference to my bills which are long past due. As this is a
personal matter and not a Company matter I need the funds as this
18 5frri!d^?n *y rae Pers°nally and not by a Company; there¬
fore, the entire deficit of over 000.00 comes out of my pocket.
??-ease have the courtesy to straighten this matter out, as
you know the circumstances. *
. . .. * have this day written a letter to the Edison Oo.
oSlafmv off-i dot£X fully> 1 ^ also hoping that you will
call at my office at some convenient time to see the various
f 2 I haV?> and g0 over the welding business which
± am sure will interest you.
Diet, G-.
[ON BACK OF PRECEDING PAGE]
[ENCLOSURE]
STATEMENT.
INVOICE
NEW YORK, N. Y._Jl«ie_3-?-4, 1-910,
NELSON GOODYEAR, INC.
>0 CHURCH STREET, NEW Y(
NEW YORK, N. Y _ sImS-JLZtb.,.131£L_
NELSON GOODYEAR, Inc.
SO CHURCH STREET, NEW Y<
i Invoice rendered #558
#575
#58 7
#588
#589
#577 (§2168.00)
100 outfits. . © $17.18
’ Royalties due on 24 generators , as per
your cr. memo., May 19. @.$4.50. each . .
i n * 17 >i .. is
your cr. memo. June 15 @ §4-. 50 each . .
1 Invoice rendered #596
12134, h
[ENCLOSURE]
Mr. Edison:
I attach a table showing, in a general way, the ex¬
penditures of my department in the fiscal year ending
Eeh. 28th, 1910, as requested by you on Monday. This table
simply gives the bills checked through by my department,
and, as stated in the heading, does not include petty
cash amounts asked for certain kihds of postage, or the
salaries of the department, over-head expenses, etc.
The items are somewhat misleading, because they are for
the fiscal year and not the calendar year. For instance, news¬
paper advertising is given as $87,411.54. This was the amount
spent from Oct. 1909 to Mar.1,1910, and about $60,000.00 more
was spent in the . same campaign during the months of March,
April and May of this year.
Ho farm paper advertising whatever was done between
October and March, 1910. The amount given in the table was
for advertising done between March 1st, 1909, and July 1st, •
1909. The other items do not vary materially. Whether given
for the fiscal or calendar year. Several of the items are for
factory forms, and really have no part in a table of advertis¬
ing expenditures. A large part of the general printing for
trade use is governed by conditions that cannot be changed
unless some radical change is made in our policy. In other
words, the Phonograph Monthly, Phonogram, Record Supplements,
Record Bulletins, Record Hangers, Record Order Blanks, etc.,
etc. , will not vary materially in cost unless we decide to
eliminate some of the forms or to get than out in a cheaper
The fact that we may reduce on our records the names of
12,500 dealers to say 5,000 active dealers does not really
affect the demand for printed matter for the 5,000 active
dealers are the ones who are using it now, the Inactive ones
using very small quantities or none at all. Our printed matter
is almost entirely distributed to dealers through Jobbers and
we have never yet been able to convince Jobbers that they
ought to have less of it. In fact, it is difficult to print
enough to fill their orders. Y7e are frequently compelled
to arbitrarily cut down quantities asked for beoause of the
practical impossibility of furnishing what is asked.
Personal
' An®. 6, 1910.
Hr. J. V/. Aylsworth,;
223 Midland Avc. ,
East Orange, II. J.
Pear Walter:
I have aeon Hr. Edison to-day about fin¬
ancial matters and with hi 3' approval liavc arranged ,
to hare the national Company pay you an additional
salary of §35.00 per week. Shis -/ill begin as of '
August 1st.
'Hr. Edison was particularly incistont that
all the espouses of your laboratory should ho assumed
by us , so that you want to be sure that this is not a
burden upon you.
Vory sincoroly.
Pli/l Y/V/
President.
August 16, 1910.
WAGON NO. 1 (SIMS & STHRM) DRIVEN BY J. B. SIMS,
accompanied By Aug. Sturm and E. B.
Gage, NATIONAL PHONOGRAPH COMPANY
SALESMAN.
TIME SPENT -- 9.30 A.M. to 5 P.M.
NUMBER OE CALLS MADE --24
MACHINES PLACED ON FREE TRIAL -- 1 STANDARD
NUMBER OF RALES CLOSED ON FIRST CALL -- 1 HOME
NUMBER OF SALES CLOSED ON PRE IOUS CALLS -- NONE.
CALLNO 1.
At Mr. Christiana Laiccia 100 Cone Street Orange and sold Home
Cygnet Phonograph and 2 APherol and fl Standard records.
This is a party they had made some talk with some time ago.
CALLNO. 2.
At Mrs. Leffert no. 599 North 7th Street, Newark, and got Home
Cygnet phonograph and u A»berol records that we left there last week
on trial. Said she enjoyed it very much and wanted to keep it , hut
her husband would not let her.
CALL NO. 3
At wrs. Towers No. 512 North 7th Street, Newark. Was not at
home, hut her little hoy said they were going to keep it, and that
his mother staid in yesterday as she thought we would he there . She
has Standard Cygnet and 5 AWberol records.
CALL NO. 4.
At Mrs. Decker No. 574 North 7th Street, Newark and got Home
Cygnet phonograph and records that we left on trial.
We called there last wee: and she said she would get a larger
machine later, hut to, leave the Home .here a little while longer* V/e
are to deliver Triumph Cygnet phonograph there November 1, 1910.
CALL NO. p.
At mts. Peterson 565 North 7th Street Newark where
left Home
Cygnet Phonograph and records on trial, and she said she would like
to have us leave it there a little longer, as her husband had not
decided what to do about it yet, V/e are to call there in a few days
and they will decide then. She wants it.
CALL WO. 5.
At Mrs. Baler wo. lol Horn is a Street Newark, where we left
Standard Cygnet and then changed it for Home Cygnet phonograph. Her
son said she was going to keep it, and for us to call later and
get deposit on it.
CALL WO. 7.
On lady at wo. 40 Ridgewood Ave . , Newark. Would not have one
in the house.
CALL WO. 3.
On lady at 38 Ridgewood Ave.V Newark. Roes not like then,
would not think of having us leave one on trial.
CALL WO. 9.
On lady at 33 Ridgewood Ave.V Newark, Got other ways to spend
her money with atvi buying Phonographs.
CALL NO. 10.
On lady No. 33 Ridgewood A a. Newark. Would not listen to the
proposition.
CALL NO. 11, 12, 13, and 14.
On people at No. 31, 29, 30 and 27 Ridgewood Ave. Ron't like i.. u
them and would not have one in the house.
CALL NO. 15.
On lady No. 26 Ridgewood Ave. Newark, Has Victor, and would not
consider buying any pore.
CALL NO. 16.
On lady No. 17 Ridgewood Ave. Newark Would not listen to any
such proposition.
CALL NO. 17.
On lady No. 122 Avon Ave. Newark, Could not buy one now, and
would not let us leave one on trial.
CALL NO. 18.
On lady at n°. 126 Avon Ave. Newark. Ron't like them and shut
the dc
CALL HO . 19.
On Mr. Bernhardt Ho. 160 Avon Ave. tfo v.-arjc and. left Standard
Cygnet Phonograph and records on trial.
Had old style Standard some years ago and sold it, but said
he might buy another one.
CALL HO. 20.
On lady P,o . 162 Avon Ave. Hev/ar.-:. Has Edison Standard phono¬
graph.
CALL HO. 21 , 22, 23 and 2d.
On ladies on Avon Ave. Hewer. and they would not let us leave
any on trial as they had heard all the Phonographs they wanted.
CALL HO. 25.
On man at Ho. 518 Bergen Street, ttev/ari: Has Victor and would
not buy any other.
IrC^cJU ■ —
3 ^ {Aa
a- ef'-'d
~CKulX
WAgOH HO. 2 (JAMES K. O'DEA) accompanied by
H. D. Clarke, NATIONAL PHONOGRAPH
COMPANY SALESMAN.
TIME SPENT — 10 A. II. to 4 P. M.
NUMBER, OP CALLS MADE — 14
MACHINES PLACED 01T FREE TRIAL — 2
HUMBER OF SALES CLOSED OH FIRST CALL -- Hone.
HUMBER OF SALES CLOSED FROM PREVIOUS CALLS -- 1 Home.
CALL HO. 1 to 8.
Made 8 calls picked up machines and records and gave each a strong
talk and walls we only landed one 45.00 sale, have prospects for future
sales.
CALL HO. 9.
Mark Paterson, Goffell Load, North Paterson placed a Fireside Cygnet
and 24 Amberol records, (good prospect)
CALL HO 10
Mrs. Mo Hair 745 Lafayette Ave. North Paterson. Placed one Standard
Cygnet Machine and 24 Amberol records Ofair prospect)
CALL HO. 11.
Mrs. H. 7/ells, was going away over Sunday o.nd asked us to call
Tuesday and leave a machine on trial.
CALL HO. 12, 13 and 14.
Made three other calls in this section where they had an Edison
machine .
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| /
/\
September IS
lir. Edison:
Here are copies of the V/agon lease and Special Credit
Agreement, a supply of which were taken out hy each of the sales¬
men.
They are to he Blgned in triplicate, each Dealer keep¬
ing one, and sending two copies to the Jobber. If the Jobber
accepts the order, he forwards one of the two copies sent him,
to us, which is our official justification for shipping a wagon
to the Dealer.
Some of the Dealers may start without our wagon, using
some vehiole of their own, but the salesmen seem to think that
they will want our wagon just as soon as they can get it, and
only use their own, pending its arrival.
C. 'E. Goodwin.
[ENCLOSURE]
r'orm Hp.x .
CJ, -fa \JM'^ '
£o~~ .
4^
i&L-
WAGON EEASE1
This agreement witnesseth ’that
palled the lessor), has,'
i leased to
of
ii- - - — ; - - (hereinafter called the lessee) for th°
term of six months from the date hereof one special three
fe™C°T?rnd mg0V'?ished cy the National Phonograph
Company, of Orange, N. J. , and arranged especially for t'^e
delivery of Edison Phonographs, and the said lessee agrees
to pay to trie lessor each month during the continuance of thi
agreement a monuhly rental of four dollars, ($4.00) and to
WI'S+f ^ g0?d re'Raj'r’ reasonable wear and tear
pxcepued , and at the termination of this lease to return
the said wagon to the lessor or his assigns. The lessee
liurtoer agrees that he will, during the term of this lease
keep the said wagon actively in use in seuUig TfaiJon '
Phonographs, and that he will so use it on at Jw»t each
clear day during the term of this lease, Sundays 'end holi¬
days excepted; that he will not carry or permit to be
carried any advertising matter on the said wagon other
than that which pertains to Edison Phonographs and Records
sxclusiyely; that he will use it for no purpose Whatsoever’
O'-ner than the sale of and delivery of Edison Phonographs
ana Records, and that if the manner and extent of the use
of said wagon is not satisfactory to the lessor, the latter
may terminate this lease at the end of any calendar monto
on one week's notice prior to such termination, provided
that any dispute as to the exercise of this right shall be
submitted to tne National Pnonogrsph Company, of Orange
!|N. J. , whose decision thereon shall be final:
In consideration of the execution by the lessor of
I this agreement, and of the execution of a special Credit
Agreement, Perm So. AH. between the lessor and lessee,
the lessee also agrees that for a period of at least three
(3) years from the date hereof, he will not use any vehicle
for exploiting the sale of any sound reproducing devices
other than Edison Phonographs.
Y/itnesses :
[ENCLOSURE]
The agreement below, when entered into by an
authorized jobber of the national Phonograph Company and an
authorized dealer of the National Phonograph Company, is
sanctioned by 'the National Phonograph Company, and the said
Couiipany hereby agrees that the jobber may extend to the
dealer four months' time for malting payment for the Edison
phonographs covered thereby, provided, however, that a copy
of this agreement shall be forwarded to the said Company
within two day3 of its execution, and the said Company
reserves the right (if the credit allowance of said Jobber
is exceeded, or for other reason satisfactory to the
Company) to refuse to ratify and sanction said agreement,
in which case the jobber and dealer shall he. immediately
notified of its action.
NATIONAL PHONOGRAPH COMPANY.
This agreement entered into this _ day of
_ _ 191 , between _
hereinafter called the Jobber, e.nd _
hereinafter called the Dealer, WITNESSETH :
Por and in consideration of the special terms
hereinafter granted by the Jobber to the Dealer, the Dealer
agrees as follows:
(1) That until the Dealer has paid in full for
all Edison Phonographs purchasead under this agreement from
the Jobber, he will purchase no Edison phonographs from any
other Jobber.
(2) That he will place an initial order with the
Jobber for not less than _ .Edison phonographs
of assorted types.
(3) That he will make diligent effort to sell
Edison phonographs on a free trial and leasing plan, and
[ENCLOSURE]
in soliciting such sales will make use of a wagon to be
furnished by the national Phonograph Company, or of a
wagon or other vehicles specially arranged by the Dealer,
and where he places the Edison phonographs supplied to him
by the Jobber under this agreement or any Edison phono¬
graphs, on such arrangement, to use a leasie agreement pro-
Ivided by the National Phonograph Company, and known as Eorm
643 j to have the same executed in each case by the purchaser
in quadruplicate, the Dealer to keep the original thereof
signed by the purchaser, give one copy thereof to such pur¬
chaser, and send the third and fourth copies thereof to the
Jobber. The Dealer may order additional Edison phonographs
from the Jobber under this ag-eement up to the number of sucl
leasing contracts as he may have secured so long as the
Jobber is willing to furnish Edison phonographs under the
special credit hereby provided for.
The Jobber for and in consideration of the fore¬
going, agrees that on all Edison phonographs furnished by
him to the Dealer under this agreement., including the initial
order of - Edison phonographs, and any additional
Edison phonographs furnished by the Jobber to the Dealer
upon receipt by the Jobber of leases as hereinbefore pro¬
vided, he will grant the Dealer four months' time of payment,
this special credit being extended in order that the goods
may be sold to users under the leasing proposition above
referred to.
Witnesses :
uy to sept. 4gar,^‘ 13^* 7^^***^
Husband don't like .than o graphs
im rw w/ ^
mmiw ftHimmi/m
i+t\\j^1 n+l fW- W W w
mri
lady wanted one, husbana i
willing
lady or husband don't like
Phonographs
H4J DU ffil
Just bought a Piano
tody would not listen
Saia would not have ono under
any oonditions, si ok of
•them
Said might get ono later
lady said had one next house,
aiok of it, not have ono .
as gift 11
Will probably buy an attachment 14
feu..,, _ ttu m mm chi nu 'tm'rwtm m aj m/ m ////
ini 1111 ^ •
mi mm nH m mi
-2-
soia
v/ Wanted ub to Tiring a Homo Cygnet
on trial
/ Wanted it left a little while
long er
* lady said had other uses for money
4 lady said couldn't buy one now
• Would hay soon
✓ Uobody answered call boll
39
5
16 rtf! m rH-J fcfft
1 i
2 W
4 l||
IS
/ lady once had Edison - ISO Records
tired of it (Hid sold it l tUI II
Could not afford
6 mi m m
s Has Columbia Diso
0 Couldn’t get Lady to consider as
she had Piano
/ Children taking music lessons,
flhono would dotraot
loft more reoords at previous
plaoings
4 Has Edison - wants more records
Kan said wife lilcod phono - was
away - oa 11 again
v lady busy with oompany, wanted
us to oall again
imi m
1
2
2
1
2
Took up machines previously loft 13
Record oall
7
Said very nice but wouldn’t buy
Sold records
8111 dooide later
Took back Fireside left Gem
ml
4 III
y nantod to see husband about leav¬
ing one 4
0 tody said not interested in
Phonos 1
0 ton didn't like Phonos 1
m a
mti mm
I!
^ Hobody home young man didn't aare
have one till saw Ms 1
0 Husband and wifo couldn't agree
on having one left 11
Said only lived there in Summer
Will trade for an Amberola
-3-
<
VJanto to talk it over with
husband
i ml ////
Had a Viator, o old it hot; has Standard
i
Han ordered ono loffs hut w lfc said
had no room
i
Sold Attachments
6 l|l
Sold Horn and Attachment
1
i J
Formerly owned Edison, sold it,
wanted another, was moving, oomo
when sot tied
1
Wouldn't consider having machine on
Free Trial
2 ■ mm wm
%
7a dy didn't holiovo in Ires Trial
o^ anything
i a
Brought more records to man who had
one on trial
i
Baok oa'J.1 - gone to had
i
Records broken
7
./
Husband wouldn't allow her to keep it
1
Wants us to call next week when will
deoide if keep it
1
Said husband would put liar out of
■house if she took on trial
1
£
Wanted one but must ask father first
1
V
Ji&s a Home, tired hearing it - wanted
to sell it
1
Wants Fireside a banged to a Home
1. 1
IJuoh pleased with it, can't buy now,
oall la ter
1 1
Will take the one she has and pay in
16 days
1
Made 7 calls no results - E told men
to give details hereafter
7
y
Has one on trial, oome lator, hasn't
the money now
1
it
Has a Columbia, tray buy an Edison
later
1
/
Had one, derrposed of it - glad to got
rid of it
2
j
Don't want to bother with it just now
1 1
Has no time to listen to phono talk
4
—
-4-
Iady has friend in 11. Y. who
offorod to give her one,
wouldn't aoospt 1 /
lady has a Viotor will nevor have
anothor 1
lady oouldn't oonaidor it r,ow - had
death in ihraily 1 ] II
Wouldn't consider freo trial - don't
like phonos 2 II
Hot interested 3 /7~H
Has Piano, wouldn't consider a
phono 1 ||1
Slammed door in my faoo 1 ||/
Has Gem hut oouldn't afford attach¬
ment just now 1
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Messrs. J. P. Morgan 3> Company,
23 Wall Street,
Now York,
Gentlemen : -
M.Y.
Referring to the interview with your Mr.
Stevens this morning, I hog to advise you that- the item
"Advances to affiliated companies, etc", amounting on Febru¬
ary 28th, 1910, to $1,397,249.23, in the comparative balance .
shoots of the national Phonograph Company, is explained as
follows
$211,412.98 Amount due from the Edison Phonograph Works.
Phis represents a balance for cash advanced,
to the Edison Phonograph Works for the construc¬
tion of its factory buildings. The amount two
or throe years ago was over $500,000., but has
hoen gradxially reduced by purchases from the
Phonograph Works. .
51,057 .84 This represents goods purchased from the Nation¬
al Company by the Edison Business Phonograph
Company. This account, of course, is an open
carried forward.
91,083,84
106,555.24
ono that fluctuates considerably. It is grad¬
ually being decreased by tho Edison Business
Phonograph Company, which -is now on a paying
haBis. Tho Edison Businoss Phonograph Company
was organised to tales care of tho Commercial
Phonograph Department of the national Phonograph
Company.
Khia represents purchases hy, tho Iondon Company
from tho National Phonograph Company, and is
also an open account. She stock in tho English
Company is or/nod hy tho national -Phonograph Com¬
pany. Tho English Trasinass for a numbor of
years has hoen quite profitable.
This represents goods purcliasod from tho nation¬
al Phonograph Company hy the affiliated Erench
concern. The business in franco has been a dis¬
appointment to us, so tliat most of this amount
nay be considered 'as stoeg on hand which later
on may have to bo disposed of at some sacrifioe.
The stock of the Frcnhh Company is also owned
by tho national Company.
This represents goods purchased from tho nation¬
al Company by the Gorman concern, which for a
number of years has- done and is now doing a
profitable business.. It is an open aooount,
$505,551.50 carried forward.
264,099.86
536,000.31
10,717.44
80.12
80,000.
$1,397,249.23
standing at about this figure and the stock
of She German Company is. also owned by the
national Company.
Shis roprosonts royalties advanced to the Herr
Jorsoy Patent Company, the money boing needed
by Mr. Edison for experimental work.
Phis represents goods purchased from the na¬
tional Company by its. Foreign Department and
supplied to agents throughout the world, in¬
cluding the national Phonograph Company of Aus¬
tralia and allied concerns in Mexico and Argen¬
tine. The bulk of the amount - probably -80$
thereof - roprosonts goods shipped to the Aus¬
tralian Company, whose businoss has steadily
increased for a number of yoars and is quite
satisfactory. All of those foreign concerns
aro owned by the national Phonograph Company.
Phis itom roprosonts light, boat, power and rent
fumiohod the Edison Storage Battery Company by
tho national Company. , The Edison Storage Battery
Company is a separate concern, but is controlled
by Mr. Edison.
A small, amount duo from Mrs. Edison. '
Shis roprosonts a loan to Mr. Edison, $60,000
of which has non boon repaid. .
I believe that all of the above accounts aro good,
with tho possible exception of the amount due jts from the
French oonoem, on which, as stated, there may bo some loss.
Regarding tho itom on tho same sheet "Balances duo
to affiliated companies", amounting on February 28th, 1910,
to $535,035.71, this is roprosentod as follows:-
$526,922.72 This roprosonts money borrowed from the Edison
Manufacturing Company, rnoBt of which was used
for the erection of now buildings and to help
out the Rational Phonograph Company in making
tho settlement with tho IIov; York Phonograph
Company, amounting to $467,500.
8,112.99 This represents Hr. Edison's current oxperi-
mental account with tho national Phonograph
_ _ Company.
$535,035-71
I!of erring to tho Profit and loss shoot' of the nation¬
al Phonograph Company, also left with you- this morning, the
relative Increase in tho cost of phonographs and records in
1909-10 is almost entirely attributable to the 'fact that in
that year tho number of records listed per month was almost
doubled and the character of talent uced was materially imr
provod. There was also a substantial increase in the oost of
labor and materials.
•.Referring to the Blight increase in factory selling
and administrative expenses in tho year 1909-10, over
previous years, this is moro than accounted for by cost of
advertising, which, due to industrial conditions, did not
turn out as profitably as we cxpoctod. Every effort is
made to reduce expense and I believe the organization is being
run on as economical a basis as possible .
fho above I bclievo covers all the points you
v/ishod to have explained regarding those statements, but if
there is anything else that requires explanation I will be
glad to advise you fully concerning them.
Regarding the probable amoqnt of credit necessary
to finance the proposed selling scheme of marketing phono¬
graphs by a house to house canvass and free demonstration
•with installation sales, this, of course, is very difficult
to fix with certainty. It is probable, however, that the
scheme will require the discounting of twSween §200,000. -
and §300,000. per month for throe months, involving a total
credit of from §600,000. to §900,000. I do not boliove this
limit need be exceeded,, because as the plan progresses we
will probably have sufficient capital to handle any oxgosb
whioh may oomo from its development. If any further credit
will have to be acquired, it will be only whon the plan.haB .
boon demonstrated to bo oommeriially safe and practicable.
Mr, Stovons asks, if arrangements could bo made
for the national Phonograph Company to open an account at
one or moro banks by whom tho nocoBsary credit might be given.
Complying pith Mr. Stevens' request I bog to jiand
you herewith a list ol1 our jobbers Pith whom pro do business
If it would bo any oonvoninnoe to you, 1 will bo glad to
havo our Credit Department give you a statement as to the
credit ratings of these jobbers.
Yours very truly,
FID. ARK. President.
Enos.
NATIONAL PHONOGRAPH CD.
i/O/fy September 20, 1910
Regarding the report of Messrs lybrand, Ross Bros. &
Montgomery, on examination of the accounts of the National Phonograph
Company, Edison Phonograph Works, Edison Manufacturing Company and Edison
Business Phonograph Company for three months, ending May 31st 1910 which
you sent me a few days ago for perusal and Comments, will say that the
consolidated Estimated Profit and loss' Statement forming part of their
report represents the summary of the individual Estimated Profit and
Loss Statements made up "by ourselves and submitted to you as representing
the Estimated Profits or losses for the first three months of this fiscal
year, resulting as follows:- .
National Phonograph Company
Edison Phonograph Works
Edison Manufacturing Company
$ 20,539.19 .§ 87,688.01
(Loss) 35,164.19 (Loss) 19,523.88
As stated in their report, notwithstanding chat the
volume of business shows a slight increase over last year, there has
apparently. been a decrease in the Gross Profit, largely owing to fewer
records having been sold during 1910 and furthermore the General Expenses
for the first quarter of this year exceed what they were last year,* thus
reducing the amount of Net Profits.
With regard to the suggestions relative to changes
in our present system of accounts, this matter was talked over by
Messrs. Lybrand, Eckert and myself at the time of Mr. Lybrand’s last
visit here, and Mr. Lybrand was told ihat there were certain changes
contemplated in the event of the suggested consolidation of the Companies,
which we hoped would enable us to give clearer and more definite in¬
formation than has been given in the past.
9/20/10
NATIONAL PHONOGRAPH CO.
Mr. E. 1. Dyer
The suggestion of using carbon cox^ies of typewritten
hills as pages of a Sales Book, means the purchase of about five
Elliott-Fiseher hilling machines which, fully equipped with the neces¬
sary attachments, would amount to an investment of about §1,000. The
saving in clerical work is problematical, because of the detailed
information required on the statements furnished the Credit Department
and the minute distribution we must keep for various reports and records
However, this is a matter that will have my closest attention and if
I can satisfy rnyself the benefits will warrant the investment, I will
recommend the change.
Regarding the suggestion that a private ledger be kept
for the Asset and Liability, the Sales, Labor and Material, and Expense
accounts, I am not ready to agree with them that there would be any
saving of clerical labor. The same amount of posting would be neces¬
sary, as the same number of entries would have to be made in the one
book, where we ncrw have four books, namely:
1 - General Ledger, containing Capital and Investment accounts and
the controlling accounts of Labor and Material, Sales and
Expenses .
2 - one ledger, for Labor and Material only.
3 - one ledger, representing Sales only.
4 - an Abstract, showing details of General Expenses.
By using one book only it would mean that the various accounts kept in
these bookswould have to be kept in the one book -with the Capital and
Investment accounts, which would be more unweildy and cumbersome.
Regarding the suggestion relative to the trial balance
being kept in book form instead of on written sheets will say that we
told Mr. Lybrand that this was installed by Mr. Eckert and used up to
within two years ago, but for some reason unknown to Mr. Eckert,
Mr. Buehler ordered it discontinued and adopted the single monthly sheet
as at present, but we are now prepared to resume the use of the trial
balance sheet he speaks of, because when Mr. Eckert showed me the old
record I immediately saw its good features and arranged to get a new
supply of sheets, which we now have and will use hereafter.
Regarding the suggestion of purchasing through one
Company, you will recall that at one of the recent meetings of the
Executive Committee, this very matter was brought up by me and passed
upon. It was brought up in connection with purchase of accessories for
phonographs.
With respect to the re-classification of expenses, this
is a matter that is now having my earnest consideration, to be effective
after the consolidation of the several Companies takes place.
Regarding the schedule of accounts as suggested in the
last paragraph of the report, this will be a natural consequence of the
standardizing of the accounts, and every person interested in the proper
accounting of Labor and Material will be furnished with such schedule.
:et no. 3
9/feO/lO
NATIONAL PHONOGRAPH CO. TO Mr* E. L. Dyer
As the system of accounting now in vogue is very
thorough and transactions between the several companies well safe-guarded,
any changes must he carefully considered. X assure you that I will give
the matter careful study and where any betterment can be made, and saving
can be affected, it will be done.
E. J. Be
JES
piU'A , "
Oot. 15, 1910 .
Mr. I. Walker,
Orange, If. J.
Dear Sir:
I have been thinking out a method whereby the publio oan
get more amusement out of the phonograph at lees ooat, and I want
you to try it out here in the Oranges. I want you to rig up a
wagon so as to carry a good supply of the latest 2-minute records,
to be sold in lots of three, four, five, or sir, you to take back
from the oustomer the same number of his old records that he hcB
tired of and does not play, and loan him sir good selections if
he purchases three; ten records if he purchases four; fifteon
■'records if he purchases five, or twenty-two rooords if ho pur¬
chases BX-r; these reoords to bo loaned him for a month. By
thiB means he will get the records at a cost of less than one-
third of what he is now paying, will get rid of the records he
hashed for a long time, and gradually accumulate an entirely new
supply- The idea 1b that he oan buy a few reoords every month
.'and get '.ft he loan of other records, thUB hearing a large number of
^different selections at veyy small cost. Try this out for a few
months , and keep me advised as to your progress.
Yours very truly,
Pj-e^>jcci * ’V-*.":
Statement dictated Saturday morning, Oct. 22,1910.
Yesterday, Friday, afternoon I met Dr. I. H. Baeke¬
land at .the office of the General Baehelite Company, Ho.
100 V/illiam Street, New York City. This office is in
the same suite of offices as the Boessler 3> Hasslacher
Chemical Company. A young man named May or Fay was in
the room at the time and I judged that he was connected
with the Company, or possibly he may have been Dr. Baeke¬
land's secretary. Dr. Baekeland received me most courte¬
ously. He said that he had substantially completed his
experiments on baekelite and had sold his German patents
to one of the large German Chemical companies and had
formed the General Baekelite Company for the exploitation
of baekelite in this country. They have a plant at
Perth Amboy with a capacity of 500 pounds daily. He
showed me various samples of pure baekelite in the form
of balls and sticks, and also samples of baekelite com¬
positions, such as baekelite paper and mixtures of
baekelite with asbestos; also wood dipped in baekelite
and given a high polish; also pipe stems made of baeke-
-1-
lite; also a pool toll made of baekelite. He said
that the Boonton Rubber Company had been using baeke-
lite for two or more years in making heavy insulations
and that he had great difficulty in educating them to
the proper use of baekelite. .He also showed me a
very heavy insulator made of baekelite and asbestos
for use for supporting third rails, and. I understood
that some of these we re now in use in Hew York. I
also saw a very intricate and wellmade easting of a
baekelite composition, comprising the yoke and brush
supports for small electric motors. I told Dr. Baeke¬
land that we had made a number of experiments with
baekelite for making phonograph records, but had not
been able to get a satisfactory surface , owing to
the formation of bubbles. He said that he presumed
Mr. Aylsworth had made these experiments; that Hr.
Aylsworth was a member of his Society, and that he
knew Hr. Aylsworth and had a high regard for Hr.
Aylsworth' s ability as a chemist, but that undoubtedly
Mr. Aylsworth, in the pressure of multifarious dutieB
was not able to devote himself continuously to any one
problem. On the other hand, he, Dr. Baekeland, had
spent a number of years in developing this material
and knew all about it. He said he had been working
on phonograph records of the disc type for about four
years. Hie difficulties encountered by him was in
the record sticking to the matrix, and he showed me
a number of samples of records with pieces torn off
where the material had stuck -to the matrix. These
were made of baekelite paper. He found that it
was possible to use a gradually reduced amount of the
baekelite with the paper, and he said that towards the
end of his experiments he found that the amount of
.baekelite that was necessary was so absurdly small
that it worried him and he folt that there would be
a limited sale for the material. Some of his exper¬
iments were made by oiling or greasing the matrix,
but he found that this made a bad surface. In some
way, which he did not explain, he had overcome these
difficulties and produced two or three little
records about 6 inches in diameter, and also one or
more larger records which he said represented what
he thought was perfection. 1 did not hear these
records played and could not judge the surface, but
he said that the surfaces were all right and very
smooth and that he played them. One sample' that most
interested me was a small part of a record that seem¬
ed to be made of baekelite and finely ground material,
and looked almost exactly like our diBcs. It had a
shiny surface ana could ho broken by applying con¬
siderable pressure, like our records. Shis particular
sample Dr. Baekeland did not think very much of and
said that it was not hard enough. The other records
that Dr. Baekeland had were enormously tough. He
said the Victor people haa approached him a number of
times and that at one of the meetings of the Chemical
Society in Pittsburg, one of the Victor men had tried
to interest him. He seemed to feel, however, that
wo wore the ones to deal with. I gathered from him
that he was under the impression that we intended to
use a shellac material. He also explained his idea
for making cylindrical records, consisting in form¬
ing a tube of paper pulp, saturating it with baekelite
and then pressing it into the mold. He said that it
could bo withdrawn by giving it enough taper. He
said that he had an application in the Patent Office
on a phonograph record made of, or containing,
baekelite, and had numerous other applications cover¬
ing details that he had worked out. One of these de¬
tails was a grinding wheel made of a mixture of baeke¬
lite and an abrasive material. I saw a sample of this
wheel which he said had been reported on very favor¬
ably. Another detail was a self- lubricating bearing
made of baekelite and graphite, of which I also saw
a sample. I did not discuss with Dr. Baekeland very
-4-
fully the question of any terms for the use of his
inventions, hut he said that his idea was that we
should huy the material from him and make it up into
records. The material would he furnished in the form
of haekelite paper, which looked like loose tar paper
and had a strong carbolic acid smell. This, he said,
was the A material. , Another form for supplying us
was as pulp saturated with the A material, which we
'could work up in blanks ourselves. He said his idea
was not to make the records -cheap, hut to make them
hard and good and that the material would not he as
cheap as other materials at the present time hut that
he saw his way, he thought, to eventually getting the
price down so that it would compete with any material.
He offered to let me have two or three of the blanks
so that we could make an experiment with them, hut
upon reflection he said that he thought we would have
a great deal of trouble, because the right kind of a
man to handle baelrelite is one who has been educated
in handling that material alone and has had no previous
experience with other plastic materials, like shellac
or hard rubber. He therefore suggested that we should
send up one of our men to see the records made, and-
I have arranged to have Mr. Aiken go up to Yonkers and
witness a demonstration on Monday' afternoon.
FID/ ARK.
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GENERAL BAKELITE COMPANY
100 WILLIAM STREET
New York, Oct. 35, 1910
/L*JU CL^O-O fyjLj
National Phonograph Co.,
Orange, N. J.
Gentlemen
in rmr i tS rday 5 had the visit of your Mr. E , L. Aiden,
mSldin^ O? we har,shoW0d Mm how we proceed in the
dn^anns^0^idifc matf^C9S • Today, we will prepare a oouple of
dozen of blanks so that he may try himself at your works. (.
+.na * WiS?i how!v!r> t0 impress you with the fact that should
position of ^h^dinn fUlly Batis£act°ry, we can modify the oom-
hianVn will th ,pd CB a2C0rdirlS to your requirements. With the
of^the^meohnni na i b^mU°5 B™Pler to leave you as much as possible
wetnuln 5h?nS 1, °f th? P^tlem, and furnish you with the
means of 'annion y + then could change into discs or cylinders by
woull hfvePtheP^Lt , The latter way of proceeding 7
ESSlrw
and thus better apply you£ 8kilieInd°expeiience^e mechanical Slde'
Very truly yours,
GENERAL BAKELITE COMPANY
4-j^,
1 ' *' f’
cTAI.!
NATIONAL PHONOGRAPH CD.
ORANGE, N. J.
EDISON pytoNDERAPHS & RECORDS.
October 29,1910
In checking over the details of the charges against \
Light Heat & Power account for first six months Qf this fiscal
year as compared with charges for corresponding period of 1909,
to account for the difference of $12,322.96, I find that before
the hooks were closed for . the year ending Pebruary 28, 1910 a \
hill was rendered against the. Laboratory for electric current
supplied from December 20, 1909 t6 Pebruary 21, 1910 amounting
to $11,014.66. Subsequent to /the closing -of the books for the
fiscal year 1909-10 ^it was discovered- that an error 'had been made
in this bill and that the charge . shouldrhave been $1,101.47
instead' of *^11,014.66; consequently a. credit was issued under
date of March 3by~1910 to make the charge rights therefore this
year's expenses stand- charged with §9,913.19 on account of this
adjustment. . .
' I also find that bill was rendered by the Works against
the National Phonograph Company under date of July 31, 1909 for
current supplied. from June 20, .1909 to July 20, 1909 amounting
to $1,08B:.70, which'/wafi credited. on the Works books to Light
Heat & Power acoount, but . erroneously' charged on the Hati onal
Company* s books to Improvement and General Repairs account,
consequently the Light Heat & Power account as a whole for the
year 1909 -shows this amount less than it should. I further
find a bill rendered against the Edison -Storage Battery Company
under da te-"0f April 30, 1910 for. steam supplied during year
ending 'Pebruary 28/ 1910,. amounting to $4,000.00. This bill
should have been rendered Pebruary 28,-1910 so as to have -been
included in last year's business/
The net result is that $6,998.89 of . the difference of
$12,322.86 is accounted for by the above figures. Of the
remaining' balance about $2,000. represents' -the increased cost of
Light, Heat & Power 'at the Silver lake planti 'Last year we were
supplying our. own, Light Heat & Power while this; year it is being
supplied by the Edison Cmehioal Works. % The remainder of the/
difference amounting to about §3,000, Hr. Weber thinks can be
SHEET NO, 2 DATE, 10/29/l0NATIONAL PHONOGRAPH CO. TO JJr t Dygp
accounted, for mostly lay increase in stock' of coaly A portion
of the difference may he accounted for by too low a price being
oharged hy the Works, for current supplied, and heat furnished the
Edison storage Battery Company and Departmehts of the' National
Phonograph Company: pnd Edison Manufacturing'Companyi .The .
Edison Phonograph Works are .charging- 2-3/4^ per kilowatt hour,
whereaB the Edison Chemical Works are .charging for current
furnished the Silver Lake plant, 4'^^ per. kilowatt hour.
Uessrs Wilson it Weber have spent some time with me
• going over these expenses' and' -Hr i Weher has-' already started to
delve ' into, the - Power iPlan't condition with a view of reducing
current expenses if possible and1’ also 4:6 ^Optablisl^a new rate
per kilowatt hour for Current e'upplied-,1,;'i,fl! necessary,,; as well
as a modification of the charges’ heretofore' :made' for, steam
furnished the Edi soil Storage Battery Company-..
• wA short time ago l1 had prepared a -complete, list of ,
General dispense help throughput the Eaotoiy Departments giving
the namesy rates and vocations. :. This, list has been thoroughly
gone , over by Messrs* Wllson.& .Weber and notations, made by' them
for Investigation with a view to reducing expenses which' can
possibly • be . reduced,. - ■ v ,
If th ere is. anything, further. I can do to assist you
in oonnedtiori with - the: list -of salaipied help of the Administra¬
tive Departments, X, am "reidy any -time '.convenient, to you. , I thiflc
the expense reports X have ' submitted so; fai* have already had a
tendenqy .'tb chec.k incurring expense s'in .oer tain quarters and
when the' Departmental . Expens'd reports which ,1 have been providing
for, and which scheme,. X, am ready- to. submit to you for.'comment
and approval, goes into affect, we will be enabled to show the
Department heads what.' the expenses in , their respective . Departments
amount to, which should * be ■ eonduslve' to the reduction of expenses .
Yours very tj
Messrs. Alton: Wurth:
Mr. Edison la very anxious to liaton to a dlac
rocord (commercial product) of ovory solootlon for which we have thua
far made masters, in order to determine which particular selections
aro, in his opinion, suitable for the first list wo are to issue. Is
there any reason why some of those records cannot he gotten out daily
until the entire lot is completed, and if not, when can you commence
delivery of them to Ur. Edison? If there is any reason why the
mattor will he delayed, kindly adviao me what it is, in order that
stops may he immediately taken to overcome it.
Mr* Edison is voiy anxious concerning this mattor, and it should,
therefore, have your immediate and personal attention.
10/31/10. o'. H. W. *
Copies to Messrs. Edison: Dyer: V/.Millor.
Hovember 9, 1910,
Wagon Orders Received
220
Contracts
Countersigned
Awaiting Signature
Cancelled
167
29
24 220
W„go„» Shipped W ' |„2
Unfilled orders (Keystpne) 37
Shipped by Bieh.1 . 00
Unfilled orders (Biehl) 58 ■
Total (Equals Countersigned Contracts) 167
Total Unfilled orders
Keystone
Biehl
37
38
Awaiting Signature
104 at 6 per day - About 18 nays
or Approximately December 1st.
Mr. Byer:-
I saw "x. Edison this morning and ho wants
mo to try out another scheme, i.e., repair or exchange
reproducers on old machines, sell records at as low
as lO^ each, or take hack old records and make an allow¬
ance of as much as 25 /5 on the purchase of a new 35/5
record; in other words, make an offer whereby customers
will get records by paying 10/5, 15/5, 20/5, 25/5, or 35/5,
making up boxes of the lowest sellers at the lowest
price and bettor sellers at the higher prices, all 2-m,
cutout records except at the 35/5^ price, which will be the
late 2-m, records.
She above is simply a suggestion and is to
be put in the form of a definite offer, after the
details have been worked out, and tried on a now set
of people - say in Paterson, getting a list of address¬
es from O' Den. He told me to work out something and
then when I go out, to be prepared to do the above in
addition to demonstrating attachments and selling
Amberol records. He wants to have enough offers to
make to keep a wagon going month after month.
I ^did not find it convenient to say anything
about coming hack to the office after ho told me what
ho wanted me to do.
I. >'/. Walker.
REPORT OP SPEC I AIi WAG OH DEMONSTRATING ATTACHMENTS AND SELLING
RECORDS IN PASSAIC.
TIME SPENT IN .PASSAIC — 10.30 to 5.30
CALLS MADE— 15
DEMONSTRATING OUTFITS AND RECORDS PLACED — 2'.
RECORDS ONLY PLACED FOR SELECTION — 4 People.
CALL NO. 1.
Mrs. Flynn (1st oall) 120 Jefferson St. Has attachment. Left
records.
CALL NO. 2.
Mrs. ^aohler (1st oall) Moved.
CALL NO. 3.
Mrs. De Moy (1st oall) 66 Hamilton Ave. Not home.
CALL NO. 4.
Mrs. Hardifer (1st oall) Phonograph she had did not belong to
her. Not now in her possession.
CALL HO. 5.
Mrs. Gutzway (1st oall) 67 Jaokson St. Left Records. Has Standard
without attachment. Don't play phonograph any more. Have bought piano
on instalments and paying for that.
CALL NO. 6.
Mrs. Goetsohius (1st oall) 214 Central Ave. Left demonstrating out¬
fit and also records. Got list of his reoords. She has 31 Edison and 13
Columbia reoords. Said she had reoeived three oeptifioates for selling
Phonographs.
CALL NO. 7.
Mr. Bailey (ls£ oall) 97 Summer St. He has attachment, left reoords.
CALL NO. 8.
Mrs. Miller (1st Call) 287 Sherman St. The phonograph she previous¬
ly had was loaned her. She bought a lot of reoords and had attachment put
on and the party took it away. Think of getting another maohine will
tell O'Dea.
-2-
0411 HO. 9.
Jotm M: Olsen (1st oall) 177 Summer St. left records. He has
attachment. Got list of his records. ae gave me address of man who
intends to buy Phonograph. Will tell O'Bea.
0.-111 HO. 10.
Mr. Perwerda (1st oall) 108 Burgess PI. left demonstrating outfit
and also records. Got list of his reoora He has 66 Edison, 3 Columbia
and 1 Paths the latter bought from Holland.
0A11 HO. 11.
Mrs. landon, (1st oall) 92 Summer St. Moved.
0411 HO. 12.
Mrs. Buyer (1st oall) 56 Van Winkle Ave. Speaks only German.
0411 HO. 13.
Mrs. Veline (1st oall) Moved.
0411 HO. 14.
Mr. Clarke (1st oall) 290 Madison St. Has Home and 160 records.
Will not get attaohment or buy more reoords. Used to buy reoords by1
the dozen and did not wait for the monthly supplement. Has grown tired
of phonograph and wants to sell it. Could not persuade him to even keep
reoords for me over Sunday.
0411 HO. 15.
Mrs. Knowlden (1st oall) Moved.
The people mentioned on this and future reports have not been buying
records recently.
I. W. V/41KEH.
(pLsw-0 '
Mr. Edison,
December 5, 1910.
In answer to your memorandum, asking about how
Babson Bros, made collections, 'would say that the entire
detail is a secret that many people have been inquiring
about for a long time.
Now the sales made on the wa^on are somewhat
different. The Babson business is started by mail and
carried on by mail. The purchaser expects all business
to oe done ny mail. The wagon man goes right to the
house, and in many cases does not object to going back
in the hope of selling records besides making a collection.
Where a house is too far away and collections by mail would
be_ advisable , we have recommended to Mr. Wagon Dealer that
he leave a supply of cards like the one attached, and urge
the customer to send the money in the same manner as to Bahson.
Babson Bros, have an advantage over the individual
collection of the smaller dealer. They have a bureau that
makes a science of it and does nothing else. The average
small dealer tries to devote part of his time to collecting
and selling, with the result that he doesn't make a great
success of either.
Where business is big enough to let collectors make
that their business, this part of the business' is always much
C. jj^OODWIN.
GENERAL BAKELITE COMPANY
100 WILLIAM STREET
New York, Deo. 13, 1910.
Mr. Frank L. Dyer, Pres.,
National Phonograph Co.,
Orange, N.J,
Dear Mr. Dyer;-
As I stated to you verbally during>^ur interview on Dec.
37th, the proposition you offered was so different from the one which
I had submitted to the Board of Directors that the whole matter hadf
to be taken up anew.
I have been thinking over the subject very carefully and
believe that I have a proposition which I could recommend to the Board
of Directors. .Before doing so, I want to know how it meets your views.
Without going into legal phraseology I shall limit myself to
outline the subjeot as follows:
The General Bakelite Co,, will grant to the National Phono¬
graph Co., a non-exclusive license for the utilization of BAKELITE in
the manufacture of sound records under the following terms;
The N.P. Co., to pay the G.B. Co., §7000 in oash on the
signature of the contract.
The N.P. Co., to purchase the raw material (Solid A, Liquid
A and B) from the G.B. Co., at a price of 350 per pound f.o.b. works,
Perth Amboy; with the stipulation that in oase the raw materials used
in the manufacture of this BAKELITE increase in price, there shall be
a corresponding increase in the selling price of BAKELITE.
This license will hold good as long as the N.P. Co., pur¬
chases at least 53 tons of BAKELITE for each calender year as long as
Mr. F. L. Dyer, #3 Deo. 13, 1910
the patents last.
For BAKELITE mixtures ready for moulding the G. B. Co.,
will charge 350 for every pound of BAKELITE contained in the mixture
plus the net cost of the filling materials contained in the mixtures
augmented 10$ of the net cost of the filling materials, augmentedlwith
33 1/3 $ of the total calculated cost of the mixture. This addition
of l/3 ia made to compensate us for manufacturing expenses in com¬
pounding the materials ready for use. This does not mean, however,
the material in shaped in disc form, nor in paper form, but mainly
the mixtures, made either dry or wet, ready for further use, and de¬
livered in powder, in granulations or in cakes.
The N. P. Co., shall have the right to terminate this con¬
tract by notifying the G. B. Co., at least one month in advance be¬
fore the expiration of the calender year.
The general terms of the license will include stipulations
contained in the printed license affixed to this letter.
I beg to add that I think we oould arrange the matter of
exportation, but in that oase we oould not protect you against im¬
portation, which then of course wgtild naturally occur as a matter
of reciprocity. This of oourse oould be discussed later on.
LHB/MES
Yours very truly,
/-
Dr. 1. a. Baekeland,
General 3aoke li'to Company,
100 V/i Ilian St. , How York,
lily doer Dr- Baekeland:
Your favor of the -15th inst. was duly
received, "but I hove been away from my office a good doal,
which lias prevented ray making a definite answer.
As I told you, wo have experimented with all sorts
of materials, some of which seem to he very good for our purr
pose, and it might possibly develop that even if we met with
entire success in experimenting with Baekelite wo would con¬
clude not to use it. At the same time., one of our policies
has "been to experiment with all available materials and to
use the one that wo think best under the circumstances. Por
thin reason 1 wa3 anxious to experiment with Baekelite to see
if it could be developed to a commercially satisfactory extont,
but 1 did not want to have tho company go to the expense, of
making those' experiments unless there was some definite under¬
standing that if the experiments were a success we would be
in position to commercially handle the proposition. 1'hero-
2 12/22/10, NATIONAL phonograph company Dr. L. H. Baokelund.
foro I suggested to you t:.at you givo us an option for one
year from January 1, 1911, to make experiments with Baokolito
in the attempt to develop a commercially praoticahle process
with that material and for which option wc would pay you the
aura of $5,000.00. In case our experiments witli Baekolito
wore successful we would then exercise the option not later
than January 1, 1912, either by paying you a lump stud for a
. non-oxclusivo license to use the matorial under your patents
or olao to buy the matorial from you at a definite figure. . I
wanted to havo this latter provision made optional because
from our oxporionco in the phonograph art I believe that wo
would find it necessary to make changes arid refinements of
your material which we alone would be in position to produce,
satisfactorily, and I therefore would not wish to bo bound
hard and. fast to purchase materials from you if wo concluded
that wo could make it better ourselves. At the same time
this v/ould bo merely' an option on our part to make the material
and of course if wo could got it from you of satisfactory
quality and price then wo would naturally buy if. from your
company. I still do not soo ‘why such a plan as this would
not be ontirely fair, because the suggested arrangomont pro¬
vides only for a non-oxclusivo liconee, giving you the right
to negotiate with other talking machine companies if we
popularise the use of Baokolito. Your suggested arrangement
does not seem to mo to be quito fair, because you merely offer
to sell us material at a price that I presume is designed to
give you a fair profit, and I understand it is: ope of the
purpo: es of. the Gonoral Baekelito Company to introduce Baekelito
3 12/22/10. NAT.ONAL PHONOGRAPH COMPANY Dr . BftOkOldnd.
in this way in connection with any arts that raay utilise it;
therefore I cannot understand why you should expect us to pay
$7,000.00 for on option if at the end of the poriod we find
oursolves no hotter off than any other manufacturer soeking
to make commercial uso of Baekelito.
I wish you would give this matter careful thought,
and I hope you. will find a way to moot me along the linos of
my suggestion.
Yours very truly,
P ID/10
President.
40GHAPH COMPANY
• December 23rd, 1910
Mr# E, I. Dyer:
During my recent visit to eleven jobbing cities, in
which. I discussed, business conditions generally with twenty-two
jobbers, would state that in but very few instances were the trade
entirely satisfied with the amount of business they were obtaining
from Edison goods - the exoeptions being I. H. Lueker, Minneapolis-'
Hanger & Blish, Des Moines; Sehmelzer Arms Co.-, Kansas City, who
all stated their business in our line was excellent, and that they
were entirely satisfied with the results they were obtaining.
, . It would appear that the general merchandise lines
were not up to other years, the piano people particularly complain-
ing at lessened sales and the very slow collections.
.... would seem that our line was probably in worse
condition than at any time in the past three years, when taking
into consideration the period of the year, 6
' is in a great measure due to the fact that the
trade are wondering what we are going to put out next, and have
been buying only what appeared to be absolutely necessary to keep
. their Btooks in fair condition.
,. .. It is certain that the Edison reoord stocks are
lighter than they have ever heen«
She demand for Victor goods haB very materially in¬
creased, and in. the jobbing cities which 1 visited all those who
were handling the Victor line were complaining about not being able
to obtain a sufficient supply from the factory, particularly Viot-
rolas of all three types, Shis does not appear to be the case,
however, with the cheaper priced disc machines. It looks to
me as though the cities were "Victrola crazy" and our Amberola
which was intended to take care of some of this demand has failed,
owing to the machine itself not proving entirely satisfactory to the
jobbers, dealers and the general public, as a great deal of trouble
has been experienced with the reproducer and which still outs the
records, and, the fact that the machine in a great many oases is
^ *kk8 'krad.e has “been unable to overcome th 4s e dif¬
ficulties in the machine. In its present form it does not seem
to compare favorahly with the Victrola, nor would it seem possible
to ever make it s^ell to a similar extent unless we can provide Grand
Opera records of a similar character to that supplied by the com¬
peting Company. - J ■ •
NATIONAL PHONOGRAPH COMPANY
Mr. E. L, Dyer. Page Do. 2.
This appears to be praotioally impossible with our present line,
and the necessity for haste in producing the disc machine and
record is more apparent than ever.
The trade as a whole are apparently making very
little 1SBSX5 effort to obtain Edison business in the -larger cities,
taking only that which comes to them, and we have only a few job¬
bers that I visited that are making an earnest effort to travel the
territory and secure the dealers business.
The jobber and dealer alike are dissatisfied, owing
to the fact that they are compelled to carry the two minute record
which is not selling and is increasing their difficulties each
month by trying to find a place to stock them.
It would also appear true that our machines being
more complicated, that it is more difficult for the average
dealer to handle and keep in proper condition, and he is evidently
working along the lines of the least resistance by handling the
disc goods, which do not appear to be giving him any serious' amount
of trouble mechanically.
It will be necessary for us to seriously consider
withdrawing certain types of our machines which are equiuped with
the straight horn, as the Cygnet horn has the call, and the with¬
drawal of the straight horn types would be an advantage to the .en¬
tire trade, as they would have to carry a less number of types in
order to show the full line.
#e have also to reckon with the entire two minute
list which is now lying dorkant, and we should discontinue listing
ten selections each month and should not make over five at the
most, and even then, this will be too many in a very short time.
The sooner we face the situation and entirely withdraw the two min¬
ute list, the better will be our results with the entire trade,
as they are disgruntled and dissatisfied.
We should also very shortly consider the advisability
of making only four minute type machines, thereby obviating to a
great extent the possibility of the machines not working satisfact¬
orily in the hands of the inexperienced consumer, to say nothing
of the ignorant dealer who is trying to show them.
My attention has. been called to the fact that this
would knock out our recording feature, which is one of the talking
points, but which- is being very little used, so far as I can deter-
. . o . . i:h® model "0" reproducer and the Priumph machine in
n* +£re£enJi ±B Siting the greatest satisfaction, and is one
of the heat things we have done in a long while, very materially
increasing the demand for that type machine. have received num-
erous suggestions that we plan to get out as an extra only, the
2 reProa-UC9r with the necessary arms for the Home and
Standard. types, avoiding equipping the machines with them as sent
out from the factory, and peimitting the trade to sell the repro- •
duoer as an extra only, •
. . . ' I- heard very little about the Idella, and while it
ought to be a very satisfactory machine, it does not appear to be
selling in any quantity, and there is a demand for a cheaper con¬
cealed horn machine than the Amberola, but if it cannot be made
more satisfactorily than that type, it ought not to be made at all.
m tra£e £,s ver7 anxiously awaiting some official '
. announcement relative to the -new disc goods, and if we can produoe
something which can demonstrated as better than that now manufact¬
ured by our competitors, I feel no hesitancy in saying we can dis¬
pose of all the factory can make, at least for a period of time.
Should the Victor Company demand that their distrlb-
£rom han^Lille any other disc line as called for in
^tracts , it does not appear we will have any
1 obtaining proper jobbing representation in Detroit,
foiedo, Chicago, Milwaukee, Minneapolis, St. Paul, either Omaha
or linooin, Des Moines, st. Louis, Indianapolis, Peoria - Kansas
City being on the doubtful list, as the J. K. Jenkins1 sons Music
Oo-* that City show a decided preference for the other line, and
thf Sclunelzer Arms Co. some xanntidss excellent
reason for discontinuing the Victor line. .phe last mentioned com-
reSen?12 opened a branch in Oklahoma City, taking over
the Edison stock formerly in the hands of Smith's Phonograph Co,.
Victor distributors, so that these remarks apply to
that City also,
held in high esteem by the trade., but the confidence in our goods
and our policies have been somewhat shaken by the conditions sur-
rounding our several exchanges, and the goods themselves are. not
selling any too readily, but I am oonvinoed that the line can be
restored to the place it held if the product can be brought to a
state nearer perfection. • 6
She present cylinder record must be very materially
as question of breakage is a very important one;
and if the cause of numerour complaints between the jobber and dealer
Page Ho. 4.
Hr. p. 1. Dyer.
and iB oreating dissatisfaction.
Reports from our traveling salesmen during our
recent meeting in Chicago very dearly indicates that the U. s.
Phonograph, line with its indestructible record and new type cylinder
machines is cutting very little figure in the trade, hut there is
a very decided rumor that when we announce our disc, that there is
a possibility of the Victor Company taking over the other cylinder
line., and if that is true, it would look as though we would have
a very lively fight on our hands,
. , I? la absolutely oertain that the jobbers who are
now handling, both lines cannot not successfully from a financial
point of view travel their territories as they are now doing with
the Victor line alone, as the larger percentage of their salesmens
business is with the Edison goods, and this no doubt will be a
considerabie faotor in the jobbers deciding as to their future policy
regarding our line,
_ Mr. George Ornstine of the Victor Co,, has been en¬
deavoring to. line up some of the jobbers and find out where they
stood regarding the Victor goods when our new diBc was offered to
tnem, and he recently tried to induce Mr. luoker, of Minneapolis,
to throw out Edison goods - Mr. Lucker telling him to "go to the
DeI ^ Healso wanted Mr. luoker to establish an exclusive
retail, Btore for Victor goods in St, Paul, where Hr. luoker's
brother is now operating, and handling both lines, but selling more
Edison goods than he is Victor. Ihere is a peculiar condition
, s i? Minneapolis and St.- Paul, as in the Minneapolis store
of luoker their retail is about 80$ Victor and 30$ Edison* while
in their Btore in St, Paul on the Saturday proceeding my arrival
there were eleven outfits sold, all being Edison machines - not
one being a Victor,
luoker has made the positive statement to me that he will stay
with the Rational Phonograph Company, and 1 personally have praotn
ically promised him to permit him to distribute our goods from the
Pwin Cities should it come to a show-down and w. j. Dyer & Bro. dec¬
ided to continue the Victor line and discontinue ours.
Koehler & Hinridhs in St. Paul are nearly ready to sell their Edison
stock and have made some -half hearted attempts, and when I saw them
a few days ago and endeavored to obtain further information from
™y stated they were not trying to Bell out at this time, but-
that they would keep me posted relative to this particular matter.
What. I wanted to do was to have lucker purchase their Edison stook
and beoome a jobber in St. Paul, so we might be provided for in'
the event of future moves,- and X think possibly this may be brought
about at some time in the future. “e
Mr. F. I. Dyer. Page Ho. 5.
It appears that the Victor Company have recently
established the Metropolitan Music Co., Minneapolis, Minn.,
which is a branch of W. J. Dyer & Bro., as a distributor on a basis
of a §1600, order, granting them the •maximum discounts, Shis is
denied. by Mr. George Malrs of the Dyer'Coo, but Mr. Buoker assures
me he received a letter from Mr. George Ornstine that the Metro¬
politan Music Co, were enjoying the extreme discounts on Victor goods
I will like nothing batter than to have samples of
the new disc furnished me at as early a date as possible, feeling
confident that when these samples are shown, and our policy regard¬
ing the goods is announced, I will have no difficulty in lining up
excellent jobbing representation in most every large City in the
country, particularly if we can promise some protection as to ter-
±x ritory, There is certainly a demand for something new in
the, Edison line, and the earlier we can place it on the market the
better it will be for us.
In conclusion I want to say that my observation
leads meto believe that the two minute record is doomed, as the
attachments are selling in great numbers, and when once placed upon
our machines the consumer rarely buys a two minute record, wns p
want to impress it upon you that the Booner we take a rational view
of this two minute situation, the better we will be off.
F. E« Dolbeer.
Copies to -
Mr. T, A. Edison; Mr. C. H. Wilson; Mr. Wm. Pelzer; Mr, D.C. MoChes-
ney; Mr, •£. Weber; Mr, E, J. Berggren and Mr, w. Stevens, • •
^-{y^rU^c
a/ .
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ZUtlr-JcA#Uy
GENERAL BAKELITE COMPANY
100 WILLIAM STREET
Deo. 38, 1910.
Mr. Frank L. Dyer,
President of National Phonograph Co.,
Orange, N. J.
My dear Mr. Dyer;-
I have carefully read your letter of December the
. nd. Our position in the matter is simply the following: If we
give you a lioense for a non-exclusive uee of Bakelite for phonograph
purposes, then we exclude the possibility of giving an exclusive
lioense to anybody else. Now it may be to our advantage to give an
exclusive license, as this particular use for Bakelite is one of the
applications which we do not intedd to license broad-cast. If Bake-
lite proves to be unsuitable or unadvantageous for your purpose, then
it would not be worth while for you bothering with it at all. But if
on the contrary, it has serious advantages, then you can use it, if
+ .r ??ur 'I'0'*'3-! output, at least for a reasonable amount of same,
lhat is the main reason why I propose a minimum consumption a year.
I you cannot consume as much Bakelite as the mininum, it is hardly
worth while for your bothering with the subject, and it would then
seem fair that we should not be prevented from making an exclusive
arrangement with other parties who, for some reason or another, could
use Bakelite to goad advantage in the manufacture of sound records.
But inuas ’ far as you attach such a great importance to
the alternative of preparing your own Bakelite, I shall do my best
to satisfy you. Therefore I propose you now the outlines of a
license withthatend in view.
You to pay us one cent and a half royalty for every small'
record made with Bakelite and three cents for the large records,
payment of this royalty to be made before the end of each year, and
an advance payment to be made every year, #7,000 for the first year,
I 10, 000 for the second year, $15,000 for the third year, #30,000 for
the fourth year and #30,000 for every following year until the expira¬
tion of the patents, this aan of money to be deducted from the royalties
to be paid at the- end of the year. In other terms, you begin by
paying us a guarantee at the beginning of the year and this guarantee
is deducted from the royalties due by the end of the year. If for
some reason or another you fail to pay us this guarantee at the begin¬
ning of the year, we have the right to annul this license for the
following year, whereas you have a right to renew the license every
year at your own option by payment of the yearly initial guarantee,
an?_Ahe r°yalties as calculated by the number of Bakelite records
sold by you.
J have no doub't that if you will analyze this proposition
you will find it standSion its own merits, and I shall be glad to talk
over the subject with you further if you so desire.
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Horae 1000 11). delivery wagon and Horse famished by
national.
Oredit of three months given Jobber on all PhonogruphB
sold on Installment; demonstration reoords famished free.
After all expanses deducted, the profit is to he divided
33^> to national* and 66# to Jobber. Shis 33# being nsed by
national to wipe out their investment. national pays horse
stabling.
Jobber puts commission men on at 30# off list, or Iobb.
Haohinea are left -on trial from five to eight days* as convenient
to salesman; every likely house gets a phonograph, people shown
how to work it. and literature left* with dosen of most desirable
reoords, donoe music, eto., tho very oream, we manufacturing them
for this purpose.
Salesman gets fresh supply goods to give out on return
over another route. Ho then goes over first rente end collects,
end uses these to go over another route, returning to pick tip
second route, and so on.
For all installment sales. Jobber is given a threo months
oredit, on receipt of duplicate contract.
City and Suburban Selling Plan.
Sana as country except two or throe salesman to one
wagon, going ahead to got permission to put ono machine in a house,
or two machines like an Amberola and Home, according to character
of people and house.
We wunt to demonstrate the Awiberola in heBt housea.
Samo scheme «a to credits and wagon as country plan.
Advertising.
iarga display posters for windows. First oloss and
as good or "bettor than Ylotor.
so newspaper advertising. Kagasine and Rational adver¬
tising. Bemonstration to take place of newspaper advertising.
Everything in advertising pushed on Amiberola and high
class business to oheok growth of Viotor in this line, beomiao
if onoe it goos too far, wo never eoulft regain, heaanse each home
with a Yiotor is the demonstrator and future salesman, not the
store <
Adopt principle of not cutting out rooorSa hut regulating
thea to » lowor price list os they got aim? of Bale.
Cfoamittao to rejeat any doubtful record; If its good
oubject, have it taken over until natiofiod.
More Duets, ete. more "high type muaie" like the Viator,
whatever that means, Which a large number of dealers say they want
on high olasa expensive maohinea.
Khis Mad of music woo not a ottooeoa with uo heoauee we
had no high prices machines. rfc aeons to me wo should get out
some BfiBolol for Amberola. Separate these from general lint
General Proposition.
Jobbers may hereafter giro four months eredit to /
healers on installnont business only, if they think it ya£e
Or they can givo the same oredits aa they give' with ,
Victor, i.e. we no longer restrain then as ta credits.
[FROM C.E. GOODWIN? CA. 1910]
PRESERT C0IIDITI0HS RE. TY/0-I.'IiIUIE RECORDS
i A 'i
fl) Dealers and Jobbers are tremendously overstocked.
Hio records sell slowly, If at all. Many arc selling their
stocks at 7 and 0 cents each. Shore is much price cutting.
^ f 2 ) Dealers and Jobbers have lost or are losing confi¬
dence in us. They think wo are without a definite policy
and think wo are merely waiting for the ond, when we will
simply throw them overboard.
^ ^ ^ur present exchange is not receiving support,
and is not regarded by the trade as offering a solution
of the difficulties. Even cutting the price to P.0 cents
will not bo accepted as a solution.
(4.) Owing to present conditions many dealers are
f drying to give up..J:he Edison-lino entirely, and are offor-
'ing their stocks for sale every day. It is currently
rumored that within a short time many bargain stores, such
as V/oolworth, will bo selling those records for 10 cents
■. oacil* A large number of such cases has just been reported/
-1-
Co permit jotters to take advantage of the two cent
credit allowance, provided in the no w exchange proposition;
in the purchase of Amtorol records instead of Standard
records. This will help the jotter, tut not the dealer.
It could not to extended to the dealer, tccausc in that
case the jotter would have no outlet for his two minute
stool:.
(2)
Co permit the sale of Standard records on the 500
"special list" or any prior cut-out list, at 20 cents each.
Hot tolioved to tc helpful because dealers say would take
too long to reduce stocks, and selling these records in¬
dividually 'would to too expensive. Even now some doalors
are selling records from the special list for 20 cents,
without insisting upon the return of two old records,
tut without success.
(5)
Discontinue making two minute records, tut continue
to catalogue them. Ecduce list to 20 cents, 10 cents to
jotter and 14 cents to dealer. Cost of records, without
general expense , is 5 S/100 each, including material,
labor, cartons and sundries.
Same objections as to plan Uo. 2, but not the
trouble of trying to sell the same type of record at two
different prices. One report is that dealers are tired
and oich of seeing these records on their shelves, the
sales are so slow.
f 4 )
Sind out by circulars to the trade What thoir
stocks of two minute records are. Intimate that we have
a proposition in view regarding two minute records, and
that success in carrying it out require# that we should
have accurate information regarding their two minute
stocks by December 1st, and that the proposition will
not bo extended to any dealer or jobber failing to report
by that time. If the stocks are not too numerous, then;
minute
tised
fa) Hotify the trade that manufacture of two
records will bo discontinued after the last advor-
list is sent out.
(b) On and after that date the price of two
minute records will bo 20 cents each list, (10 cents to
jobber and 14 cents to dealer). This reduction, however,
need not be made.
1)
(o) Offer to take 1)001:, any two minute records
f £Ji full ore dit. to be applied record for record on our
I disk goods when they come out. Tell what our disk goods
I are. Assuming double faced disks sell for 75 cents list
or 37-1/2 cents to jobber, this would mean 22-1/2 cents
\net on goods to jobber.
fd) Tell the trade that we intend to dispose of
returned two minute ro cords through bargain stores, and
"\b sell to Y/oolworth stores, Soars, Roebuck h Company, and
^ othors for G and 10 cents - the best price1 2 3 obtainable.
This would increaso the price for disks to over 30 cents.
ADVANTAGES
(l) Offering full credit for returned too
minute records would immediately restore confidence in us.
(2) Jobbers and Dealers would get rid of stocks
that they now regard as hopeless, and without a loss to
them.
(3) ’Je wo iild have an immediate market for
disk records. The trade having credits that would be
utilized only in our disks, would have to buy them, and
pay the balance when the disks come out.
(4) Wo would forestall tho Victor Company in any
move to hurt us, because Dealers would have to buy ours.
She Victor Company could not afford to handle tho two-
minuto situation thomsolves.
(5) A largo catalogue would, still bo left of two
minute numbers* for those people who want them. fhey could
be sold at a profit of ten cents, because all talent and
mold e:qionsos have already been absorbed.
(6) limiting tho cylinder trade to Amberols,
we could put out <er four minute machine? such as the Standard
type hereafter, which would be simpler to build and operate.
(7) flie two minute record being out of the way,
the Arpborol would bo an easy thing to sell.
7~
lfcU+4 U** — -k. Uv^ C^^vj
v^or*&. VW^-w CtstL
...
^ (**&**,
.
i
m
Seme as 4, except gives credit on Araborol records,
ordered from lists at least two months old, on a basis
of two to one. Considering that advance sales have
absorbed talent and mold expenses, the profit on two
Ambcrols on sale to jobbers would bo about 27 cents, and
allowing a credit of 15 cents, would mean 12 cents, or
6 cents each. If the returned record could be sold to
'Joolworth for 10 cents, it would mean, a profit of 11
cents each on the Ambcrols. Of course, such a plan would
be based absolutely on the assurance that a satisfactory
arrangement can be made with V/oolworth and similar dis¬
tributors to take the returned re cords in large numbers.
If this is done, the manufacture of two minute records
would probably have to be discontinued entirely, but
the trade want this done, and there would still be a
list of 1400 such records to choose from, by those who
want them.
Shore is no escaping the fact, that the recent
exchange proposition of the Victor Company, record for
record, with full credit allowance, has tremendously
increased the feeling of dissatisfaction towards us,
and made the trade even more apathetic.
-G-
Under existing conditions every plan for getting out .
printed matter of any kind, for trade use in. stores or for
redistribution to the public, 'always considers, our 13,000
Dealers- as the trade unit. Every order we place is
-with the thought that we may he called upon' to supply each
one of the 13,000 Dealers. If a desirable form coBts
20 cents each we multiply it by 13,000, say the cost ‘is to
much and in most instances don't get it out. Of, because
we believe that a large percentage of our Dealers waste
printed matter, we do not gat out forms that are really
needed by our good Dealers.
Eor tha purpose of argument I have just tabulated some
statistics, about our Dealers in Uaw Jersey. They are sent
herewith. •
These figures show that out of 255 Dealers only about
90 carry an adequate stock and onlypabout. 120 carry 500 or
more Records. At least half of the 255 are indifferent Dealers
and should not badconsidered to any extant in planning
an expensive plane of display matter, provided we can find
a way to reach the good Dealers : and leave out' the poor ones.
I believe that the percentage of good Dealers is greater in
Uew yersey than the average of tha entire oouhtry, for in the
South the Dealer carrying a stock of 1,000 Records is a rarity.
If we should make a similar tabulation of the entire country
I doubt if we would find more than 5,000 Dealers carrying a
stock of 500 Records. Therefore, if we can find a better
way of distributing expensive forms than the present one of,
delivering through Jobbers we can get out many more first
class. forms than at present.
we can utilize to advantage the information after we get it,
I would urge the establishment of a department for the purpose
.of ascertaining and keeping on record* here the exact status
. and all detailed information about every one of our Dealers.
Even* though we do sell through Jobbers, there is no reason
why wevS]}Suld not have the same information about' every Dealer
that wS'^B® compelled to have it we sold to Dealers direct.
Our present policy of practically granting exclusive territory
in / small cities and towns makes this information very essential.
I believe that we ought to have a report at least once a year
on every Dealer, even as to hiS' credit, if it can be had. -We
cannot hope to greatly increase the number of Dealers now signed
up.. T^e must get our business from present Dealers, or others in
the same towns if existing ones do no t measure up properly. The
Agreement Department is gradually acquiring the desired information'
about Dealers, but it only gets thei information where some other
application is made or some complication arises. It cannot
hope to get it complete in years if it ever gets it.
PHONOGRAPH COMPANY
-2-
You may regard the foregoing as unnecessary to any consid¬
eration of advertising plans, but 1 believe it to be vital,.
The more 1 study Dealers conditions the more I am convinced
of the great waste in our present plan of attempting to get
printed matter to Dealers through Jobbers. A small percentage
of the Jobbers distribute it wisely and advantageously. We
could not improve on their methods. The remainder do it
indifferently or not at all. It is not uncommon to hear of
Jobbers using costly printed matter for packing in place of
excelsior. To distribute printed matter direct to Dealers
would involve considerable trouble and expense, but other
large companies like the Eastman Co. and the Shermin-Wiiiiams Co.
do it with a list of dealers at least as large as ours.
Companies like these. also use their printed matter as an
effective lever to jack up weak dealers.
A special department such as I have suggested could,
in mr opinion, perform another service of great value to
us. In looking over the reports sent in by salesmen
(which reports, by the way. Should be fully utilized in keep¬
ing up our knowledge of the status of Dealers) it has seemed
to me that there was in them an opportunity to influence the
Dealer in another way., With the right kind of a man in charge
of the special department, a separate and personally signed
letter could be written to each Dealer after the salesman's
report came in, pointing out thi? ^condition and suggesting this
or that way for increasing business. I know that the salesmen
do this to a large extant, but I believe that a letter from the
main office, courteously and intelligently written and
supplemented with suitable printed forms, would make a deep
impression on the recipients. I do not have in mind any
automatic printed letter service, but a specially dictated and
specially written letter in each case, although form paragraphs
could be used. The whe^e department including salaries,
stationery and postage would not coBt over $10,000 a year.
Properly conducted it would be worth twenty timesthat amount.
Such a department must be a part of our business at some time
even if it is decided not to create it now. We are too far
away from direct contact with our Dealers. We do not know
them well enough ;and they do not know us.
. Another kind of work .that ought to have attention in
planning for new printed matter , is that to be done in the.
citieB and towns where Dealers are located. Our salesmen
do what they can but their time it too limited to do more than
call on Dealers, talk to them enthusiasticajjly and take their
orders. They have no time for work that will interest the public
in our goods, although a few of them dcKgiva concerts in the hotels
that are very valuable. We must^&SJTplans for arousing
Interest in our goods. The Amberola will now help in large
cities but much more can be done. The Dealer in the small -
town says that nobody in his vicinity is now interested in talk¬
ing machines. We must, get some interested in )this place before
he will become a better Dealer. I have no definite; suggestions
to make along these lines, for there are more salesmanship
than advertising, hut I believe that we might with advantage
spend part of our regular advertising appropriations in direct
work on Dealers, as for instance paying part of the cost of
local advertising, putting up posters with their names,
special circularizing, etc. 1 am convinced that our
magazine advertising does not benefit Dealers in small places
to any great extent, and that we must do some advertising
nearer to the small Dealers. This special advertising has
some complications but a little study might cause them to
disappear.
With a more exact knowledge of the status of every Dealer,
we could greatly strengthen the work of the salesmen. Wow,
when a salesman wants this or that special direct service
granted to a Dealer, we are in doubt whether the salesman is
over zealous or whether the Dealer really wants the service.
Wo doubt would exist if we knew all about the Dealer. Then,
too, salesmen would gat batter results if they oould offer certain
inducements to a Dealer conditioned upon putting in a proper
stock. An offer to pay part of the cost of advertising in
local papers, to put up some posters, to circularize from here
a special list of names, to furnish electrotypes of illustrations
or. complete advertisements, to ship a special supply of printed
matter, to furnish specially printed invitations to a Phonograph
concert, etc. , etc. , would, I believe, make good Dealers of
hundreds who are now practically dead. Work of this kind would
bring the Sales and Advertising Departments closer together and
they never can be too close for effective service.
I have written the foregoing simply for the purpose of
provoking discussipn. No work of this general character can
be carried out without a lot of discussion and study. It
cannot be disposed of by saying "Good, go right ahead.* It is
too full of details and complications to be discussed in this wy .
If given the necessary authority I will undertake the work, but
your active Jmterest in every important detail will make it more
certain of success. If the Committee. as a whole does not
care to go into the details, and it probably cannot give it
sufficient time, I would suggest that Mr. 'Wilson, Mr. Pelzer and
I be appointed as a r subcommittee to work out details and report
to the full Committee. The subcommittee might ask the
assistance of Mr. Dolbeer when considering National matten;
Mr. Hudson when considering Battery matters, and Mr. Durand when
considering Business Phonograph mattery -
Following are some of the subjects that should have
immediate consideration: -
GRAND OPERA RECORDS AND PEOPLE
Shall we print a Grand Opera Catalogue as a regular form, in
addition to carrying the Grand Opera titles in the regular domestic
Catalogue SO
If bo, and from 150,000 to 200,000 of such catalogues
trill he needed to meet the trade requirements, what limit •
would you place on the cost par 1,000? Would §10.00 per
1,000 he excessive, or a total cost of §1.500.00 to §2,000.00?
We have decided to run the Grand Opera titles in the regular
catalogue on different colored paper and the cost of this will
he from. $1,200.00 to $1,500.00 a year above the cost of the
regular domestic catalogue.
If a separates Grand Opera Catalogue is continued as a
separate form, shall it include some of the British, German,
French and Italian Grand Opera selections at 50 and 35 cents
each, as well as the Grand Opera titles at 7b/and §1.00?
If so. how many, who will select them and whefre can this
selection be made?
In what manner shall we furnish the trade with pictures of
Grand Opera Artists? Whom shall we feature? What cost per
picture? Shall we furnish the trade with pictures of Grand
Opera artists without restriction, without cost and without
knowing that the healers carry Grand Opera Records? If not,
how shall we decide who shall have them?
AMBEROLA PHOTOGRAPH
What forms shall he printed to push this machine? Its
quality opens up a new field and makes high class printed
matter desirable.
HERBERT. SOUSA. STRAUSS. ETC.
What special printed matter shall we get out to continue
to feature these men, if they are to^eature^at all? Shall
we print display forms and at what cost each? Shall we send
these out without restriction? If nolj how shall we handle
them?
BAND ORGANIZATIONS. VAUDEVILLE ARTISTS. ETC.
What special printed matter shall we get out to feature these?
Many of them have been paid high prices hut as yet we have not
featured them to any extent, in special printed matter. If
they are to he featured, what may he spent in doing so and how
shall we put the matter in the hands of the trade?
TALENT NOT KNOWN TO THU PUBLIC EXCEPT. THROUGH THE
ADVERTISING OB THE TALKING MACHINE COMPANIES.
These include people like Jones, Spencer, Porter, Murray,
CollinB, Harlan and others who have been the hack hone of our
business. They are becoming restive under the publicity given
the hewer people and as a talent war with the Victor Company
is evident they must have consideration.
How and at what eixpense shall we feature them?
NATIONAL PHONOGRAPH COMPANY
-5-
WITTOOW DISPLAY DEPARTMENT
Shall we create such a department securing a competent
man to take charge of. it and letting the manner of handling the
displays he decided later? The expense of such a department
might reach $pl0,000 a year and "be a still greater expense unlesB
we adopted the Vlctor/J/'bf making a charge for the material in
the display. A charge of this kind keeps down the cost hut
greatly limits the benefits of the department.
The creation of this department would simplify the question
of special forms to feature all classes of talent, for the forms
could he planned as part of the displays and also used
separately.
POEMS TOW IW REGULAR USE
These' should he gone over one hy one and a decision reached as
to whether or not they are as effective as they can he for the
cost.
The forms include the several Record Catalogues, the monthly
Record Supplements, the Phonogram, the Machine Catalogue, the
Phonograph Monthly, the Record Bulletins, the .Order Blanks etc.
etc.
Since the adoption of new forms trill mean more expense and
any new expenditure must have some relation to what we are now
Bpending, X give ha low a summary of the approximate cost of the
forms we are now issuing regularly.
TEAKiar COST OB' FORMS ISSUED KEGULABCf
Domestic Record Catalogue
Machine Catalogues
Foreign Record Catalogues
Record Bulletins
* Supplements
Dealers Order Blanks
Numerical Catalogues and Inserts
EdiBon Phonograph Monthly
The Phonogram
Monthly Hanger Announcing Sale of Hew Records
Grand Opera Reoord Catalogues (2 a year approx) _
$d'6'8'50.00'
Most of this cost is repaid hy Jobbers and Dealers.
The above does not include forms like store hangers,
mailing folders, etc., that are issued irregularly. This
kind of printed matter should also have attention at your
hands in the hope that they may be made more effective in
producing business for Dealers.
$27000,00
8000.00
2500.00
2700.00
21600.00
660.00
1250.00
4800.00
14500,00
840.00
2000.00
I
NEW JERSEY DEALERS
Humber of -ftecordg, Dec. 27, 1909 exclusive of
Jobbers branches - 855
Humber reported on by salesmen in past 15 months - 168
Humber not reported on and about which no statistics but
the business of each can be given - 87
BPSIHESS OE HEATERS Off RECORD# v
Talking Machines 53
Pianos or Muscial Mdse
- or both 31
General Mdse. 27
Autos or Bicyles
or both 29
Books or Stationery
or both 20
Sportiqg Goods 16
Jewelers 13
Eurniture 9
Cigars 8
Confectioners 7
Barbers 7
CLASS OE 168 REPORTED DEALERS
Class 1 (Stock of 1,000 or more Records) 82
* 2 ' ' 500 to 800 ■ 20
■ 3 ■ « 300 ■ 500 ■ 18
■ 4 » ■ 150 ■ 500 ■ 26
■ 5 ' * * 150 or less " 6
“ 6 Hew Defi. ers 7
■ 7 Ho Report 7
Slot Parlors 2^
Druggists
Dry Goods
Hardware
Electrician
Printers
Slot Parlors
Milling
Grocer
newsdealer
Photo Supplies
Seeds
SeVrlng Machines
Gas Lamps
Agent '
Hot Given
168
MAKES OF TALKING MACHINES PARRIED W BACH CLASS
EDISON ED I SOW & EDISON.VICTOR ’ EDISON EDISON & EDISON
ONLT VICTOR & COLUMBIA VICTOR ZONO- &
DISC. & ZONO- PHONES COLUMBIA
PHONES DISC.
CLASSIFICATION OE 82y CLASS #1 DEALERS
Edison only 23
Edison & Victor 53
Edison, Victor & Col. Disc. 4
Edison Victor & Zonophone 1
Edison & Zonophone 1
MUE-IC M { SC.
The unreported Edison Dealers are located in small places
and it is not probable that the number carrying other makes in
addition to Edison is any greater than the percentage of other
makes in classes 2 to or 20 per cent (14 carrying other makes
to 72 carrying Edison only) This conclusion would place the
exclusive Edison Dealers in the State at 165; Edison, Victor and
other makes, 90.
It is also' doubtful if many of the 87 unreported Edison
Dealers are entitled to any better classification than between
classes 2 to 5. If, however, we assume that 10 per cent are in
class 1, we would find that we have in the state 90 Dad. era
carrying 1,000 or more Edison Records and 165 carrying 800 or
less. ,
An analysis of the Dealers, in classes 2 to 5 and a study of the
salesmen's reports, show that these Dealers carry talking machines
as a side line and fully 60 per cant of them give them only in-
sidental attention.
-3-
_ According to the salesmens' reports. that out of all th«
Dei ers in the State carrying Edison and/or goods, only 8
td Victor goods. The others either push
?yr lins ahead of the Victor or give us an equal chance.
Those who favor the Victor line are the following:-
0. A. Eeimer,
Trusting Piano Co. ,
Alma Brown
R. Scheuermann
Hahne & Company.
Newark Talking Machine Co.
Oliver Phonograph Company
H. V. lough,
Asbury Park,
Bayonne
Cha'tham
Newark
Plainfield.
- j. . J:h?r9 ar® P1"013*13^ a few exclusively Victor Dealers in
I £oul5* ^ th9r9 ar9 t9n* 1110 most notable
instance that of Guenther in Newark.
National Phonograph Company Records
Correspondence, Foreign (1910)
This folder contains correspondence and other documents relating to the
marketing and supply of phonographs and cylinder records in Europe, Australia,
Mexico, and elsewhere. Most of the items are letters to and from Frank L. Dyer,
president of NPCo. Other correspondents include Walter Stevens, manager of
the Foreign Department; F. K. Dolbeer, manager of sales; and Thomas Graf,
managing director of NPCo, Ltd., and the Edison Gesellschaft. Among the items
for 1910 are letters pertaining to business conditions in Europe and to orders
received for phonographs and supplies elsewhere around the world. Also
included are letters concerning the proposed consolidation of Edison’s interests
in Great Britain and in the United States under the names "Edison, Limited" and
"Thomas A. Edison, Incorporated"; the proposed sale of the Mexican
phonograph business to George W. Cook; profits and expenses of Edison’s
various European companies; and the adoption of sales schemes being used in
the American market.
Approximately 10 percent of the documents have been selected.
EDISON PHONO!
FOREIGN DEPARTMENT
or THE
NATIONAL PHONOEHAPH CD.
EDISON MANUFACTURING CO.
HATES MANUFACTURING CO.
10 Fifth Avenue.
Ur. Prank L. Iyer, President,
National Phonograph Co.,
Orange, N. J.
Bear Sirs
Ur. George Cook, of Messrs. Hosier, Bowen & Cook, of Uexioo City, Moxioo,
called at the office yesterday as per appointment, and the matter of his taking over
our entire Mexican Business was very fully disoussed.
Our proposition was to turn over the entire Business in the BepuBllo of
Uexioo to him, provided he would relieve us of our entire stook which is now held By
the Uexioan National Phonograph Co., with the possible exception of Battery material
and other goods which he might not Be in a position to handle. We proposed to sell
him the stook outright, allowing him an additional 10$ above his present prices, whioh
correspond to the Jobbers’ discounts as allowed in the States. Mr. Cook promised to
give the matter very oareful consideration, But was not inclined to Buy outright our
present stook held in Mexico City. He proposed to relieve us of that stook provided
we would dispose of the stook to him on a consignment Basis, a complete inventory to
Be taken, and at the end of every six months period he would report as to the amount
. of goods disposed of from the Stook, and payment would Be made for suoh goods as were
disposed of, at the end of every six months period. On all subsequent purchases he
would expeat us to allow him, as above stated, a dlsoount of 10$ above the prloes he
NATIONAL PHONOGRAPH COMPANY
1 FOREIGN DEPARTMENT
F. I. Iyer p 2
Is now paying, which, as stated, are our regular U. S. jobbers' prices.
TERMS In view of conditions as existing in the Republic of Mexico, he also
stated that he should be allowed a credit of six months on all purchases made, as ha
stated it requires at least one month after goods are shipped from New York before they
are reoeived, and it is necessary for him. to give from three to six months oredit, this
on account of practically unlimited credit which European houses give to merchants in
Mexioo.
Messrs. Hosier, Bowen & Cook are the Uexioan representatives of the National
Cash Register Co, Who grants him six months oredit, and he also represents a number of
other manufacturers, including Remington Typewriters and Hosier Safes, etc.
I enclose herewith a statement showing the oost of phonographs and records as
charged by the factory, freight and duty to Mexico City, oost to Messrs Mosler, Bowen &
Cook on a basis of goods purchased at American list prices less jobbers' discounts, and
oost to Jobbers in Mexioo on the basis of Mexican list prices, which lnolude duty and
freight, less Mexican discounts, together with oost to dealers. The oost of maohines
and^reoords to the Foreign Department as shown on this statement is based on the prices
prevailing prior to January 1st, as Mr. Redfearn has not yet completed his new sohedule
of prices Which apply after January 1st. Messrs. Mosler, Bowen & Cook took up the
Bale of our apparatus a year ago, together with Viotor and Columbia lines. Their busi¬
ness so far has amounted approximately to $8000.00 Cold.
Provided our Hexioan business were turned over to Messrs. Mosler, Bowen & Cook,
after allowing them the additional 10$ diaoount, we would still net a good margin of
profit.
Mr. Cook was not inclined to bind himself to purchase any particular amount,
but assured me that he would use every endeavor to do a large business .- If this arrange¬
ment is made, he will conduot the phonograph business entirely separate -from his present
NATIONAL PHONOGRAPH COMPANY
FOREIGN DEPARTMENT
F. L. Dyer
P 3
business, employ a manager and speoial salesmen to canvass the Republic thoroughly, and
take up the entire business in a large way. If our entire business ware turned over
to Messrs. Hosier, Bowen & Cook, I have no doubt, with the facilities they have at hand
for doing business, their purchases would amount to approximately $60,000.00 per year.
If they gave us that amount of business, we should net at least $10,000.00 per year.
I am inclined to think that if the above arrangement is made with Hr. Oook,
we oould induce him to relieve us of our office building in Mexico City, and I also be¬
lieve that he would relieve us of Hr. Nesbitt. Our lease for the Mexican office ex¬
pires December 1st, 1910. The rent for the building is $260.00 Gold per month, and
we receive $60.00 Gold per month on account of subletting a small part of the building,
making our net rental $200.00 Gold per month.
I believe you know that Mr. Cook is praotioally the sole owner of the business
conducted by Messrs. Hosier, Bowen & Cook, and he has one of the largest and best equipped
stores in Mexioo City. They handle the better class of office fixtures, furniture,
household goods, etc, and carry an enormous stock. Mr. Cook is rated in Mexioo City
as a millionaire and he stands very high in offioial and business olroles. In addition
to his business, Mr. Cook owns the Hotel Morelas in Cuemavaoa, also the San Angel Inn
(a valuable property), Just outside1 of Mexioo City. I also understand that he has
largo realestate holdings in Mexioo City. He has large influence in offioial cirolee
and is reported as being very olose to President Diaz, and I might state that it was
through Mr. Cook's influence that we recently obtained a phonograph reoord made by
President Diaz.
There 1b no doubt, if we ever expect to turn over our business in Ilexioo to
any individual or corporation, that there is no one in the' Republic who oould represent
us in a mope dignified manner.
If there la any further particulars you desire regarding this matter, if you
NATIONAL PHONOGRAPH COMPANY
v.'ii' osdon Junotion,
. London, 'nglnd.
j.C’iro 02 the Gt'n nil • wac duly roooivod cn tho
ti oo .. 02 tuo possi i.-i.Lity o;: cur b-.iwg- able to naho direct chip- .
•' “c --c’cn.vc in nglend, and J note that you regard this
ac „ ~racti cully l ^ "L.c. : h vc reior-cd the n.ttcr to
1 :on :'.v. i: vc- hi.-; advice thr.recn, . nd I find that ho
ocvooc with you. 't the cane, fr;o, t.-o must di t .j.-.- t if
t.ioro ,n ; ;iy v.vy by .vans of v.-hieh o:: enso in tho conduct of our
foroign businocr.- can ho eliminated it v;ill. he very eosirablo.
ini,, is narticul riy true in connection with tho "business dono in
nendon boemtoo it does not ifchc. . vory coed comp-, risen in regard,
to tno businosn dono in Australia, for the roaoon that your soiling
ormonoos and advertising- cento arc noooosarily higher booause of
tho. boon congd'rfi^"^-021 j|:c nbieh you arc subjected. Mr. Edison,
however., dpos not see these suostions orcnotly as wo do end
it is difficult to always r.r.hc it clear to him why tho pore outage
of onponoc to ooloo should he highor in onb part of the wortdL
than in another. later on I will write you regarding this
L
a/ D/io.
Ehonas Graf.
NATIONAL PHONOGRAPH COMPANY
matter . 'but rt tho pros oat tine I would like Tory much If
poo :iblo to have coraothing Gone alone tho lino of i.Sr. Edison's
sug ostion- If it would be possible f r uo to nakc shipments of
scvnplo records to you earlier then r:c Co at prosesb Go you think
it would bo possible' to rapSip on ri-ra-ngonont with tho footoro
by which aft or hearing the samples they could place orders with you
to bo filled directly iron Cranio? I rooogniso, of courso, that,
•by, issuing the samples sc .for in advanoo of the 'actual publication
of tho record:; • o loso to a oortcin ertent in tho oaoo of selec¬
tions of noro or lose popular interest- I sec no reason, how¬
ever, v;hy ro should net grailm liy inpr v on the dr too of ship¬
ment of rooordc. to you so that evrtv. .lly wo might bo f r enough
ah--.c! to on bio ski -rents to bo race iron Orange .
""indly o or aider th.i.- -• i tor ;; in, ' if yen bolievo
f | it wcuV bo possible. to fill orders from Orange sc as to
eliminate tc eert->in orient the err- --nr. o of storing cud ro-
ship-'tr;; records in I.ondon, lot r-- Imow .-.bout her f:r in :raco
of the a.ctu 1 phi" .cat of the records you should roeeivc cam-ilos, ’
and I rill see if it v.-jll bo possible to moot yc-ur views in this
particular. I really believe that' if this suggestion could bo-
effectively c;. tried out a very considerable saving' could bo
effected, amounting to Vnitc a g^nidcrable percent of tho net
profit-
Yours very truly, -
PlD/lOT
- President.
.a Poll. 9, 1910.
Personal raid Confidontlr-1
I3ionas Graf, Esq. ,
IVilloodon Junction,
London, "ncl.-nd. .
Gy do: r Mr. Gref:
Shortly hoforo :ir. Edison loft for Florida tills
yoar be ached no to brine «p r:ith 'Mo the question of tho cccponco
■ nd profits of oux* vari one foroien offices- Chic I did,, hut
the ehOT&nG v; s .not particularly Good, raid -I an uritine to. you riot
in the nay of a .conj.il • int 't all hut in ordor to discuss tho wit-'
tor franl&y -Tilth you- and to Got your ideas as to .tho situation-
I realise, of course, from v;hat you 3i-.ro told no raid f roigi vrliat . I
liavc seen nysolf, that tlio ocapotition to vrhioh you are subjected
is ontror.oly Iroori and tfot in all' fairness a comparison cannot
properly ho'nado hotuoon tho ronults secured by you in Europe-
end tlioo© uliicli v;o iro able to obtain in tliip country. Iho
fijjnroo- Which I have, chow th-'.t in tli© London offico tho poroontaco
of oapcnocsto nelos.in 1907 was 18.1$, in 1908 SB. 3$, and for
tho first nine months of '1909 31.0 jS.
In Borliri tlio porccntacc of oxponco to oalos;in 1907- _ .
was 38.1/j, in 1908 44.3JJ nd for tlio first nino iaont3is of 1909
44. G&. • . _ ’ , ^
In Baris tho poroontaco of oxronoo to oalos in 1907
waa 84$, in 1908 58.7$ and 'tho first nlno months of. 1909
72.1$.
It good Without sayinG that tlio ohoping mado by tho
B-.rio office ioabnolutoly impoBsiblc, and I have not regrettod
my determination to curtail or.ponpo hy closing tho office in tho
Ruo do Paradis. ' -
Pile showing in London, howover, is dioturhinG hooauoc
it shows a Gradually increasing poi-ccntago of onponoo to salos,
and tho sane io also t ruo of Berlin. ’ '
For your information I night say thot in Australia
the poroontsgo of osponoo to soloa for tho first nine months of
1909 is only 11$, and at no time lias it boon higher then 1S$.
Of oourso in Australia thorp io very little competition and tho . -
bsponno for advertising’ purposes is relatively low. Chore. arc
Dome orponoos, howovor, in connection with tho London hupinoos
which I third: should roooivo vory oaroful consideration hy you.
For inst nco, in 1907 the offioo salaries amounted to 014,959.88,
in 1908, O’lG , 549 . 80 , and for tho first nino months of 1909,
015,589.52, so that at tho same r to .tho~o salaries for tho past
yoar would he in tho ncighboirhood of (17, 00' . OO. JMa is a
vory oonsidorahlc inoroaco in office oalsrioo, notwithstanding tho
faot that the sales havo fallen off almost 50$.
Tho itom of warohouso wogod , is also difficult to
understand bocauno in 1907 this ouponco amount od to §8,276.00,
•with a total husinoss of §574,299.92, whilo for tho first nino
months of 1909 tho so ouponsoo amount to §7,404-16, which at
tho sane rate would oqual for tho ontiro yoar ovor §9,000.00 with
• a total husinocs of not moro than §300,000.00 or in tho neighbor¬
hood thoreof. It sOoms to mo that. this particular' itom of
. 3. 2/9/10. NATIONAL PHONOGRAPH COMPANY UlOEiaS GVO.f •
a-cp ciioo ought to "boar a one dofinito rolation to tho sales .
Ehoro aro othor itoma of orponoo that 'do not coon to
hoar tho propor ratio to salon , for instanoo, tho quostion of
saloamon. . In 1907 tho coot salesman too 06,654.00, nd.
for tho 'first nino nonths of 1909 this cost, too 05,972.00,
which ‘ at tho some rato for tho ontiro yoar would amount- to
alnost §7,500.00. In other r/ordo; with tho sales falling off '
almost BOfj, the ooot of oolosnon considerably increased.
I rcaliso, of couroo that it is impossible to always .
maintain the same ratio of asnoaso . to salos, hut it is very
import -nt. that this ratio should ho kept as nearly constant’ as
possible. • ITo douht i ll those clononto of oriponoo havo boon gone
into vory a, rofully by you hocauso I know. your ideas ore alone tho
right linos and' that your p'rincip:! Intoroot is in tho way of
economy. I bring tho matter to your attention, howovor, in .
ordor th t you may go into this quostion in dotr.ll and lot no know
3u:t what your idoao as to tho possibility 'oithor of roduoing' tlio .
oseponpe to a further ontont-or as to your hope in tho way of
increasing .tho salos- I think I an tho only one . hero who has a..,';
clear _ appreciation of tho difficulties under- which • you labor
and I an in .entire -sympathy, with you ana will do all 'that I con
to help you out in tho <y/ay of now linos .which ought to on bio
you to increase your bucinoco. At tho same tino I would liho to
have from you a complete stc.tonont of your ov.n opinion regarding
tho situation and tho way you would oixplcin tho apparont inoroaso
in or-rnonno with a falling off in tho salos, in ordor that I may
discuss tho quostion fully with Hr. Edison when ho roturns. Ho
dcos not oxpoot to return to Quango until April, so that thoro
will be plonty of time for you to givo the -ranttor vory oaroful
2/9/10.
NATIONAL PHONOGRA
Thonaa Graf.
oonoidcration In ordor that you any v;rlto no in detail.
Yours vory truly,
PXil)/ 1 \1\"
rrooidont.
Mr. Frank L. Dyer, President,
National Phonograph Oo.,
Orange, New Jersey,
Dear Mr. Dyer:-
Your letter of Jan. 19th has been held without earlier
reply, owing to the fact that after my return, I was completely
swamped with urgent business matters, and to the further fact that
I wished to discuss with my phonograph department the subjeot matter
of your letter.
I would request you to authorize MT. Nisbett to show me
suoh data in regard to the amount of his saleB, the accounts with
his dealers, the expenses of his establishment, and suoh other mat¬
ters of a like nature as are necessary for me to have in order to
appreciate the present condition of your business in Mexico. I
understand that you have a statement to the 1st of January made up
by the Price-Waterhouse fy 0o , , chartered accountants, and if there
is no inconvenience in sending this to me, I should be glad to see
a copy of it.
In this connection, permit me to say that I do not think
that I could use Mr. Nisbett here, as I believe that a knowledge of
the business conditions of the country is even more essential than
■Mr. P. L. D. -2-
a Knowledge of the phonograph business , in the conduct of our
department. The Knowledge of the phonograph business can be
acquired probably more easily than can the Knowledge of the lan¬
guage, the people, and the business conditions of the oountry.
I beg to maKe the following comments on the proposition
contained in your letter under reply:
(1) We would be willing to take on your exclusive representation
in the Mexican Republic for the sale of phonographs and records, pri¬
mary batteries and numbering machines. The moving picture machines
and films we could not handle to advantage.
(2) Your statement of the disposition to be made of your present
stocK in Mexico, and ^as to the method of our accounting to you for.
the same, is satisfactory. We understand that when you say that
goods are to be consigned to us at prices 10$ below those we now
reoeive, you have in mind your American list price as a basis.
If we are now receiving 50$ discount from the American list, we
understand you to mean that we shall reoeive 60$ from your Amerioan
list on this consignment Btooh.
(3) As to subsequent purchases, we likewise understand that the
additional discount of 10$ over our present prices is based upon the
Amerioan list, and if we are now receiving 50$ discount from that
list, we shall on suoh subsequent purchases receive 60$ discount.
If the additional 10$ disoount is intended to be limited to the net
price we are now paying, the additional disoount offered us would be
too trifling to warrant us in undertaking the general agenoy.
As to credit on these subsequent purchases, we naturally
would prefer six months to^three , and hope you can see it to your
interest to make us such an arrangement.
Mr. F. D. -£-
(^) When in New York, I discussed with you the proposition of
our having the right to return to you suoh records as we might pur¬
chase in the future, in oase they should prove unsalable. You
indicated that such an arrangement could be made , but in your letter
under reply you have forgotten to make any observations on this
subject . Kindly inform me as to what arrangement you: would be dis¬
posed to make. I consider this extremely important, as wheraobusi-
ness is done on suoh a fine margin, it is very possible to lose the
entire profit in heaping up unsalable records.
(5) You speak of the Jobbers in El Paso and Los Angeles who
are doing some business in Mexico. We assume that they are doing
business in Mexico at the prices fixed by you for Mexioo. As we
will be the ones who foment the Mexican business through our travel¬
lers, our advertising, and our propoganda work, thus creating a mar-
Ket _^these jobbers, we believe that we should be credited by you
with a difference between the price paid by these Jobbers and the
price you charge us, on all Mexican goods which are handled by these
'Jobbers. .
(6) m regard to advertising, you will appreciate the fact that
your American advertising in magazines and newspapers is of no value
to us in Mexioo. We shall be compelled to expend large Bums of money
in advertising, as advertising is the very life of this business in
Mexioo. We would suggest that you give us an advertising allowance,
and we will agree to put up an equal sum, and the total shall be
dedicated exclusively to advertising the Edison goods from the
stand point of the Edisjon representation, and not from the retail
stand point.
(7) We are now retailing the Edison, Victor, and Columbia
Mr. F . D. -1^-
phonographs and discs. We understand that our Edison.', representa¬
tion would not in any way deprive us of our rights to continue re¬
tailing all these lines.
(.8) An examination of your Mexican price-list shows us that on
the "Home" and "Triumph" machines, the margin between your Mexican
dealers' price and the price you are now charging us, 1b very npi«n
indeed. It would not cover the expenses of doing business, even
with the 10$ additional which you would give us as your representa¬
tives. Kindly examine these prices, and see if the price to us on
these machines could not be Improved.
(9) In ease we ehould conclude our proposed arrangement, we
would be willing to tahe over your lease on your Mexican office and
warerooms up to Deo. 1st, 1910.
We are negotiating for the contruction of a four story
building which we trust we may be able to conclude, and which we
hope to dedicate exclusively to our piano and phonograph depart¬
ments, and would hope that this might be finished about that time.
Again referring to Mr. Nisbett, I would say that he im¬
presses meaas an excellent phonograph man, and I really believe
that he can be of greater value to you in the American territory
than in the Mexican territory.
Hoping to hear from you at your convenience, I beg to
remain , .
Very truly yours,
G. Croydon Harks, 'aq. ,
C® & 8$5 Lino o In 1 a Inn fields ,
London, f. C., England.
Door Mr. Harks:
Shoro havo Loon porno developments horo rocontly
that load mo to boliovo that possibly an offort trill ho made to
oncploit tho Poulson golographono in England and that possibly
in a oino nay ,:r. Edison's nnmo will be used. Eho throo non who
aro intorostod in tho mr.ttor aro "Col." John ... ghompson, -who
■ was at ono tine a sort of finanoial baokor for glioma a. Ediaon,
Jr-, end got that young man into all sorts of difficult ios, from
whioli I on glad to say ho has now boon oztrioatod; William Holsor,
a brother-in-law of Mr. Edison, whoso character is of the very
shadiest dosoription and with whom Hr. Edison has had nothing to
do for a good many yoars; and "Col." p. w. Jacobs, who at ono
time was connected with tho so-called "Ediaon Polyform" but who
in rooont yoars seems to hvo gono very muoh to tho bad.
Speaking plainly and confidentially to you, r 11 of those
mon in my opinion aro of vory bad oharaotor. They havo triod to
got money outo'f mo in various ways and thoy liavo ondaavorod to
got mo to givo thorn letters of rooommondation to pooplo in England,
which, of oourso, I havo rofusod to do.
G. Croydon Marks.
(2)
3/7/10.
Should any of those cion appoar in London or clsowhoro
and make any protontions towards having Up. Edison's ondoroomont
or support or toing in any v/ay friondly with him, ploaso tako the
nooossary stops to promptly oontradiot any such st at orient s.
ily personal viow is that any financial aoliorao they may try to
float in London must nooossarily to of a cuostionatlo charaotor.
Of oouroo you will oonsidor this letter ouito con¬
fidential.
Yours vory truly,
eld/iv/w
Gonoral Counsel.
NATIONAL PHONOGRAPH COMPANY
Jr
Unrcli 10, 1910.
George Cool-:, Use.,
Moslor* Bov/on .1 Cook, .
P. 0. Box G58,
City of Hoxioo, Uoxico.
Boar Ur. Cook:
linking on extended reply to your favor of Febru¬
ary 84-tli, ana in accordance with your request, I licnd you here¬
with copy of the Profit end loos sheet of the Mexican national
Phonograph Company prepared by Messrs. Prioe, V/aterhouse h Co.
for tho two years ending December 31, 1909, which, of course,
1 shall ask you to consider absolutely confidential. flic
figures are in Mexican currency.
You will note that there was a loss of §$.,'298.16 for
tho year a$Q^|nd of 082,242,07 for the year 1909. Sho sales
for both years are substantially tho same, but the added ex¬
penses for 1909 are more than accounted for by tho substantial
increase of the advertising appropriation. The extra cost of
goods in 1909 was due largely to tho fact that in the pre¬
vious year a rebato was allowed for returned records and that
for about six months of the provious year we wero paying the
freight to Mexico.
If thero are any additional figures you would like to
have I will ho glad to furnish them, although my own idea is
NATIONAL PHONOGRAPH COMPANY
Go or go Cook. (2) s/io/io.
that in submitting tho proposition to you,' v/lmt has boon done
in tho past should not out much of a figure. y/o huvo certainly
oponod up tho territory, established dealers, made the goods
popular to a certain extent and lost money, but I bollovo you
have just the right kind of talents and opportunities to tako
over the proposition as it now stands and make it pay. I be-
liovc in ti c you could very materially increase tho salos, and
I cm euro, with your largo organisation, that the percentage
of oxpenso would bo very much roduood.
I note what you say regarding Mr. Wisbett, and if you
cannot uso him in Moxico I may bo ablo to find a place for- him
here.
I do not understand from your letter that you definitely
.accept ray proposition or that you melee a counter proposition
which. I can accept, bccauoo 1 take it for granted that you wish
to look more closoly into tho actual situation.
(1) Assuming that you have satisfied yoursolf as to
tho general hopefulness of the. proposition, 1 note that you arc
prepared to take on the exclusive representation in Mexico for
tho sale of Phonographs, Records, Primary Batteries and number¬
ing Machines, but that you cannot handle Moving Picturo Machines
and films to advantage. I would like to have a dofinito and
final acceptance by you on this point as soon as possible.
(2) Regarding the pricos to bo ehargod you for goods
consigned from our present stock in Mexico, we are prepared
in the case of machines (Phonographs, Primary Bnttorios and
numbering Machines) to make an additional 10# discount from
tho most favorable prices rocoivod by our jobbers in tho United
Statos. In other words, in the case of Phonographs , for ex¬
ample, tho prooent jobbers' discount is 50# foxcopt on the Oom
rnaohino, on which tho discount is 40#) ; wo would allow you 60$
discount from list (in tho ease of the - Oom machine 50# discount)
i’.o.b. IIow York. In tho ease of phonograph records wo cannot
make an equivalent reduction, hooauco to do so would mean an
actual loos. At the pro sent time our standard 35-oent records
arc cold to jobbers for 10 cents los's 5$ for broakago, amount¬
ing to 15.2 cents net. Our 50-cont .Amborol rooords aro sold
to jobbors for 20 conts loss 5# for breakage, equaling 19 cents
not. So allow/ you an additional 10# would mean a price of
11.7 cents on standard rooords and 14 cents on Amborol records,
which are below/ our actual ooot of production for Amorican
records. The cost of our .Mexican records is actually con¬
siderably higher, because, owing to tho comparitivoly limited
oalos, tho rolativo oxponso of making the maotors and paying
talent, etc., is much higher. For instance, the last time,
wo sent our recording mon to Mexico to make up a list of Mexican
records tho cost wao upwards of £10,000 u. 3. currency, which
has to bo distributed over a very groat number of records to
bring tho cost for this itom .down to tho figures’ of our Unitod
Statos records. V/o would therefore have to make you- a special '■
flat price for records, and the best we oould do would be 13
cents for standard rooords and 15 oonts for Amberol rooords.
hator on, if the salos warrentod, thoso prices might be olight-
ly roducod; and. in tho case of records that wo may put out in
the future at a higher price wo will bo willing to make equiv¬
alent concessions.
_ NATIONAL PHONOGRAPH COMPANY
Gborso cook. (40 s/lO/lO.
Ag I intimate d to you in confidence , wo anticipate
putting out apodal linos of phonographs in the near future
which wo boliove will be very attractive to the Mexican trade.
(3) She prices abovo roferrod to apply to subsequent
purchases. I do not see how I can consistently consent to
six months credit, because goods horo arc sold at 30 days, C',j
dlsoount for cash. I will, howover, make a concession of an
additional month and give you four months orodit, which I hope
you will accopt as a compromise.
(4) It would not bo possible to make an arrangement for
Mexico under which you couia return for credit any records which
prove unsalable, but tlio same arrangement could bo adopted in
Mexico that we have found has worked satisfactorily in tho
States. In this country we ondoavor to keep our catalogue
limited to about 1500 selections, and at stated periods, onco
or twice a year, wo remove from the catalogue as many numbers
as havo been added to it, tho cut-out numbers being records
which have had the smallest sales. i7c then pormit jobbers and
dealers to return to us all cut-out records and givo them full
credit for now records. In this way thoir stooks aro always
kept up to date and slow-soiling records are removed from the
market. Shis could, be done in Mexico, tho list being kept at
a proper number and as many rocords being cut out oach year as
may be added to the list, with tho privilege' of return for cred¬
it in ordoring now rocords. In this oonncction you of course
would lose tho amount of duty paid on cut-out records. In tho
Statos wo insist upon the return to us of all cut-out records ,?
before credit is givon, end these cut-outs aro then dostroyod.
GOOl'CC COOk. NATIONAL PHjbjilJ)GRAPH COMPANY g/lO/lQ.
but it aught bo possible in Mexico, without materially conflict-
inc,- with our ono-prioo system, to moke an arrangement with you
under which wo gave you credit of one now rocord for ouch. two
cut-out rooordo in your stock end then o.llowod you to ooll the
cut-outs at a special prioo.
(5) The roasonublonoss of your proposition on this
point does not impress mo as convincing.' If our Los Angelos
and El Paso jobbors did no business in IJexioo at the prosont
time and us a result of your advertising succoedod in develop¬
ing local fields' it might be ouito proper that v/o should crodit
' you with the difference between the prico paid by thorn and the
price wo ohargo you. Those Jobbers arc now doing somo business
in Mexico, and as to this thoro should not be any allowance .
It would bo difficult to tell how much business they dorivo
from your advertising and how much from their own efforts, but,
as I have written you, I am ready to out off these Jobbers from
enoering tlio Mexican territory as soon as you oonvinco mo tliat
you arc satisfactorily covering the field.
(6) I will be willing to co-oporato with you on the
subject of advertising, at least for a little timo until wo soe
how tno scheme works. How much wovild you propose to oxnond
in this way?
(7) The exclusive soiling arrangement with us will not
in any way deprive you of your rights to retail Victor and
Columbia talking machines and discs.
(8) I cannot make any further concession on Home or
Triumph machinos , but, as I figure it, with the 10# additional
discount allowod you your Jobbing profit oven on thoso machines
Coorgo Cook.
NATIONAL PHONOGRAPH
fG)
H/lO/lO.
will run betwoon SOJa unci 40JS, while the rotuil profit ia a
very handsome ono.
(0) X note, ahoulcl you conclude tho proposed arrange¬
ment , you Would bo willing to take over our leaeo on tho Moxi-
cen office unc! ware-rooms up to December 1, 1910.
I think tho above includes all tho points called for
by your letter and I liopo to hove a favorable reply from you
in order that tho arrangement can be put into of foot as soon as
posciblo.
Yours vory truly,
fld/ivm
President.
pju
NATIONAL PHONOGRAPH COMPANY
:.toi’ch nij me.
— and Confidential
Hiorr.c Gr; "an.,
O/o national .'1ioaoGva:.'Ji Co. , ~,td. ,
Y.’il?.ooi on Junction, London.
:.1.V door Jr. Givi:
P.O-orrinG to your coniauontir.l letter oi Dcconoor
17t3a, tlio aovorr.2 iomo oi’ dial;: machines ,-;jd tho c3icap cylinder
moirino liavo boon roceivod, nd ro are all rioro f3ir.ii surprised'
t3mt f .oao naohinos can Tie cold at auol- lov, prices. in a laeaauro
I havo appreciated tho difficulties v/liich havo. confronted you in
< t"r'° riu& 0:C cotnotit: on but I think tiioso sample naohinos for tho '
. first tino -havo demonstrated to our pooplo horo tlio actual oituo-
tion in Europe.. .of course tho rn.c3rj.no c arc flimsy 'and trappy and
indicate- -cheap raatorialo and lew-prieod labor, and it would nevor '
do-ffor us to attempt to put out work oi tills' sort end lend our
nario to it. At the sane tino I bcliovo that your diliicultioo .
would in u noaemro bo ovoroono by follov:inC alone. flio two linos - •'
indicated by you, and I liavo tl’.oroforo proposed and will take up
witli our llnginooring Department tiio following: •
(1) Dosienine- a oylindor naohdao to be mao just as
clicap ac will bo oonsiotont with Good raid propor work, tho mocliaii-
.iom only to bo sent you and tho oabinotc to bo nanufaotured in
Iiueland or Gormany or wliorover you con liavo then undo clioafost, '
2 5/ .01/ 10. i'fconco Graf.
NATIONAL PHONOGRAPH COMPANY
do tliat your only problem would bo to aooonblo tho mochaniam in
the oabinoto. Probably the iVno3i3.no could lint no low no two
Pouidn to pin;/ oithor 2-nlnuto or d -minute rocordo, and 2/l0 for
n aombinaulon maohino to p 1 ay both typos of rocordo. Y/hut uo you
thinlx of t3ao idoa of mr-.hlnr; n opooial raacJiino that will piny only
.taborol rocordo list Inc at a low prioo?
3j3PorlraoatsT.rG new pretty roll completed r.t -'tho- Labor¬
atory on an indontructiblc rooord, not nado of celluloid, having a
very 2io.ro. anu nnoov.u ourfnoo. fliono x’ocordn would ho vory choan
to mn\ fn.cturo and I boliovo that Ariborolo could' ho lintod an low
c.r. a chilling in Croat Britain. J ' now how you loolood upon tho
reduction in tho ?i-ioo of standard records in 'rgdend -and you niglit
o-uonc any attoir.pt to roduco to price, of amborclr:, particularly '
cin.co it would ho ir.r-onnr i.'lc to r.v.!:o a 00 rrc r.pondi ng reduction ±n
tnc ntrndard records; hut still the nitration my iuvvc changod rind
you nay loch upon thin quention in r. difforont way. '
Aaotiior idea I have." alwayn had v;ao tho foaoihility of
uahing a C00-t3;roo.d h-miLiuito rooord, which would ihoroforo bo of
t3io caino diaaotor an tho. Amborol record hut only tv/o inehon lone-
Such a rooord would be voiy cheap to mho' and could bo lintod for
10 ponco or porhapo loos. If would 'aloo permit tlio construction-
of a vory cheap maohiho' in wJiioh tho sound box would bo fed from ■
tho record, no food screw, being noooooory, but at tlio came time it
ccald, oi courno, bo unc& on tho regular conbination lmchincc. It
would occupy only ha 3^ tlio opaco of an ordinary. >§,Jgs^§rd- record
although of tho ocnao loagth, and the bo:: would bo- vory compact end
portablo. Lot mo liavo your viewn frnnhly ao to this- suggestion. ■■
fhoro would probably bo no nood for mahing roqordo of thin sort
Mr. Frank L. Dyer,
President, National Phonograph Oo.,
Orange, New Jersey,
My Dear Mr. Dyer
I beg to acknowledge receipt of your favor of April 5th,
and in view of the data laid before me, I have made a careful study
Of the proposition offered by you in regard to your general repre¬
sentation in Mexico.
The conclusion 1 have reaohed, after a careful consideration
Of the matter, is, that it would not be business for me to take on
your general agency in the phonograph line. I believe the profits
to be derived from thiB agency are not sufficiently great to cover
the expense of conducting the agenoy, and to leavO me a margin
which would make it worth my while.
I greatly regret that you have been put to so much trouble
in this connection, and I thank you very cordially for having given
me the opportunity.
Very truly yours ,
«*».. ~Jx&.
. NATIONAL PHONOGRAPH COMPANY
1-o
{toy s, i9io.
Ihonas Graf, Esq.,
national- Phonograph Co. , ltd. ,
Willosdon Junction, London.
Boar Mr. Graf:
Yours of tho 19th inst. has hoon rocoivod, advising
mo that you have forwarded an Idolia Phonograph to tho -one, and
I am very glad to hoar of his intorost in this matter.
Mr. Edison su^gosto that you should Icoop the Popo sup¬
plied with records from time to time if you see no impropriety -
in doing so.
Yours vory truly,
fld/ivav
^resident.
Hay 10, 1910.
Personal
Thomas Graf , Doc . ,
national i'honograph Co., Ltd.,
V.’i lies don Junction, London.
Dear Hr. Graf:
Hr. Edison lias brought up more or less forcibly
during the past few days the question of whether wo arc mailing
profits or' not abroad, and I have been surprised to hoar from Hr.
V/ostoe that your reports .to him hove been so much delayed. He
should have insisted that frequent' and current reports should
have been received from you showing 'the exact condition of the
business. It is only natural that Hr. Edison should be most
deeply interested in tho success or failure of his scheme of
putting goods to you at cost, and he does not want to have to
wait for any long period to elapse before finding out as to just
what may be expected.
In our domestic business I receive on the 1st of each
month from the Credit Department an estimated statement of what
bur collections v/ill probably bo and at tho same time a definite
statement of what our collections for the previous month were.
It seoms to me that some such scheme ought to be possible with
you and that you should send me as near the odd of each month
as possible a statement showing the estimate^, sales and estimated
oxponse of each offico f London, Paris and Berlin) for the month
o/lO/lO. national phonograph company Thomas Graf.
just past and a definite statement tof tho sales and expense of
tho preceding month. In othor words, beginning, say for tho month
of i/lay, 1910, you should send me a statement not la tor than June
10th giving an estimate of tho result of tho business (sales and
exponso) for tho month of May, and before tho of July you
should give mo a similar ostimatod statement for tho month of
Juno and also a 'corrected definite statement for the month of.
iIa y* ln "l:hiG X7ay 1 would novor bo more than one. month behind
on an .potimotod result of tho business and never more than two
months behind on a substantially correct statement of the roBult
ff th0 l3UOin®SB oa°k office. Of course those statements could
be explained in any .proper way, and if an- expense was properly
ohargable ovor an entire year, it could bo prorated for oaoli month.
Is there any reason why this cannot be done? If it can be done
I wish you wouia give propor instructions to have it- put into •
offoct. ,
• Yours very. truly.
pld/i xm
President.
G.fid-iai
EDI50N-EE5ELL5EHAFT m.h.h.
V 10735
EDI50N- PHUNIIBRAPHEN u.HDLDBUSSWALZEN.
FRIEDRICHSTR. 10.
Th.G/Sch.
‘Cfr.y May 25 th 1910
Prank L.Dyer, Esq. President,
ITational Phonograph Company,
Orange, N.J.
Dear Mr. Dyer,
Berlin Sales Office Profit and loss Sheet for 1909.
I herewith heg to hand you Profit and Lose Sheet (Factory
and Sale6 Office combined) for 1909 of the German company.
I eliminate from this letter the figures it contains
about the factory, firstly because I wrote you about these in my
letter attached to the Factory Profit and Loss Sheet, and secondly
because, although the figures had to be combined to fulfil the
requirements of the law, they should not be considered as far as
they refer to the factory, in accordance with Mr.Fdison’s arrange¬
ment that the shutting down of the factories and the loss caused
thereby should not speak against the Sales Offices.
I also refrain from giving here any explanation about
General Expenses and other single items on the Sheet, in order not
to make thee letter too voluminousand to keep it clearly arranged.
The amount of Mk.15009.78 written off for patents, which
makes the sheet appear more unfavorable than it actually is, should
be eliminated, as it is formal only.
The loss of the Sales Office is given as Mk.105204.06
to which we must add 10)£ depreciation on Furniture
a/c, Tool a/c, also writing off the Furniture a/c of
our former Vienna Office » 3596.59
108800 ! 6b
Edlson-Oesellschaft m. b. H.
Berlin sw. 48. May 25th 1910
Prank I. Dyer, Esq; -2-
forward Mk. 108800. 65
deduct reserve for had debts carried
forward into 1910 . " 5000. oo
Mk. 103800.65 tfifeASQ
or in American currency •' total lose of #24714. oo.
If we apply this lose againat the profit of the London
office the latter would he reduced to #12462. oo. Paris I expect
will ahow a lose of about #6000-, so that the total European busi-
neae of the Salea Officea will reault in a small profit of a few
thousand dollars, the London office with its profit of #37176.-
heing the only paying office.
About the causes of the unprofitable work of the Berlin
office I have very fully written you from London over a month ago.
The reduction in price of our records, the high cost price of the
records purchased from America, increased by the heavy duty and
considerable breakage, leaves this office with so small a margin
of profit on the standard records that even with the utmost saving
of expenses they could not show a profit on this our main article,
of the Phono department. I have also outlined in that letter
referred to that the satisfactory development of the film business
in 1910 would outbalance this difficulty. I have also provided
further reduction of expenses for 1910, as outlined in that letter.
I do not hesitate to state that the business in the
two-minute record in this country will show a further decrease,
as the interest of the dealers for the standard cylinder record
1b diminishing, the profit since the price reduction being too
small, and the competition of the disc so great, the handling of
the disc so much more profitable, that it is more tempting to the
dealer to turn towards the disc and neglect the cylinder trade.
Edlson-Qesellschaft m. b. H.
Berlin sw. 48. May 25 th 1910
Prank L.Dyer, Esq: _3_
The email margin of profit which this office has on the cylinder
two-minute record makes it alto impossible to make concessions to
factor® or dealers, or to go to great expene.es in advertising,
travelling staff, as it would not be profitable. On the contrary,
to adjust expenses more to the turnover, I had to make reductions
in the travelling staff, advertising, and all round.
The Amber ol record cannot yet be a substitute for the
two-minute record in this country, because the number of Edison
phonographs in use is comparatively small and consequently there
are a few machines only which can be turned into Amberol-playing
machines. This condition would undergo a change, if we could
bring on the market a cheap Amberol machine for the purpose of
popularising the Amberol record. No other manufacturer here has
as yet attempted to make such a machine, it therefore rests with
us to do something in that direction.
The outlook for 1910 in this territory as far as the
cylinder business is concerned, is not bright, although as I stated
in my letter referred to before, with the film business we are
doing and the reduction of expenses which I have provided for, I
expect to make a better showing this year, and I shall be glad if
in showing Mr .Edison this letter, you would at the same time show
him the forecast of the German business given in my letter which
I wrote you from London about a month ago.
I know however, the issue of that form of record which
is gaining here in favor all round, the disc record, will bring
about a change,, create a new interest with the dealers, and bring
about a revival of the business. It is needless to say that I am
absolutely against an interruption of the business by sudden radical
changes, as this would cause disturbances which could not be made
Edlson-Qesellschaft m. b. H.
BERLIN SW. 48.
Frank L.Dyer,Es<i:
May 25th X910
-4-
good any more, such changes alto being more expensive than the
continuity of the business, the more so as the move so long
delayed which will bring about the revival of the business, is
near at hand. But whatever Mr .Edison's views on this matter
might be, of course, I should like to be consulted before anything
definite is decided. Should Mr. Edison, however, not wish to
wait, I shall be glad if the matter is being discussed and decisions
arrived at that this should come to the knowledge of a very limited
number of parsons only, because not only plans decided upon but
even projected plans discussed and abondoned, are escaping and
are being reported over here to the detriment of the business long
before I know them. T will not mention many instances, but
you remember the closing down of the factories, which I had managed
to keep practically unnoticed, so that people should become used
to it gradually, was reported in the trades papers, contradicted by
you, and in the following issue of the American Monthly it was
publishd by Mr .McChesney. The experiments with the discs, long
before you intimated anything to ma in a letter, was reported to
Bussel-Hunting, who told people here and in France, that Mr. Edison
is going to make a wonderful disc, something that will beat every
other disc etc.
I repeat that I am absolutely for the continuity of this
office, because any radical change causes a disturbance, a distrust-
and we have obligations to our dealers, -which cannot be made good
any more. An the continuity, as I showed you in my letter, is
less expensive than any other method. But at any rate I should
like to have communicated to mgt^as the first Mr .Edison's opinions
and intentions, ' because I should like to avoid the strain caused
BERLIN SW. 48.
Frank L. Dyer, Bag; _5_
by uncertainty. It does not increase my personal force and does
not help me in my work.
Yoursyerj truly^
^ vLiUet —
MANAGING DIRECTOR
Mr. Shomas Graf, Managing Director,
Edison-Geselleohaff; K.B.H.
Priedriohstr. 10,
Berlin, S.W. 48,
Germany.
Dear Sir:
Your communication of May 13th addressed to Mr. Dyer has
Been referred to the writer for attention ana reply.
We are sending you under separate cover, all trade letters
ana descriptive matter regarding, the Amberol Attachment
Proposition, and it is working out so entirely satisfactory
in this country, that we cannot see why you should not also
take advantage of it, unless there may be something in the
local conditions which would make this impossible.
You of course understand that the records are being sold to
the Jobber at less than factory cost , but it has produced
a very large demand for the Attachments , and 1b resulting
in thousands of machines being brought out, whioh have been
in disuse, and will, consequently, make Amberol Record
Por your information wouia state that in less than two months
we have sola nearly 16,000 Attachments; thiB in addition to
approximately 30,000 Attachments which were in the hands of
the Jobbers ana Dealers, which have also been moved; in other
words that would mean there are 45 « 000 fhonographs which
have been, or will be equipped with the Combination Attach¬
ments in the very near future , thereby very materially in¬
creasing the demand for Amberol Records.
She only difficulty we have found in handling it has been due
to the demands made upon us- by people who had previously ob¬
tained an Attaohments and who felt they also should be privil¬
eged to purchase ten Amberol Records at the very nominal
price of One Dollar; and some few oomplaints regarding break¬
age in the special records, with requests for replacement.
Mr. Shomas Graf. Ho. 2.
but in view of the fact that these Records are being sold at
bo low a prioe, we absolutely refuBe to replace any which may
have been broken in transit.
Of course in your case the ten special records which we ore
using might not be acceptable, and this feature might have
to be changed to meet the conditions aB you see them.
You will find among the papers an outside label which iB
being pasted on the box which contains the records, and
which specifically states that we will not replace or make
any allowance for breakage.
She Boheme iB working out to the advantage of all concerned,
and the Jobbers and Dealers have been very enthusiastic about
itas is indicated by the enclosed letter which has been is¬
sued by one of our Jobbers, and is only a sample of what
has been done in oonnection with this proposition.
Hoping you will be able to take advantage of the plan, and
that it will prove as satisfactory to yourself as it has
to the domestic office, and with kind personal regards, I
beg to remain.
-Youra very truly,
National Phonograph Company,
Manager of Sales.
F.K.D.
May 27th, 19X0.
Mr* Thomas Graf, Managing Director,
Edison-Gesellschaft M.B.H.
Friedrichstr. 10,
Berlin, S.W. 48,
Germany.
yonF i^miry regarding the Combination Attachment
■Proposition, about v/hich. I have written yon quite fully this
respectfully advise that we have now under
a ~la? rMch we Believe will produoe results
wnivia 11i be ?urprlsi-nS* and we are now having the details
now Sd ?J|u^ iStflS?ofUt 4t lnt° 6ff9ct 8ometim® between
^^f5lyT^li:QOd :-n V,r® P^P03® malting it possible for the
fdda£° f°*£|r or Beal|r bo give away six Amberol Records to
any bona fide owner of an Edison Phonograph; suoh records to
S' el e°t?a from a special list of from 25 to 50 numbers.
(not catalogue records,) as a premium for actuallv brinmine
about the sale of an Edison Phonograph of any type^not oover-
a n^°lal li0e?Se 7Moh iB ln *s® oa second-hand °°chf
ines. These records, f specially made for this purpose )
are not to be offered for sale to the public underSvcir-
oumstanoes^and are to be given away in lotB of six, no
"l1p Bp<30lalllr engraved eertifioate,
ccAd-itions _very clearly outlined upon its faoe.
^emL+°+5^pr°Vla?d bhe Jobbers and Dealers in quantities
J® 2,®®* requirements, with the understanding that they
5Snd f11 '00na owners of Edison 7
ponographs* the certificate entitling the owner of an Edis™
3?er^ePLa°indK T01*8 ^ KelSSig l?sf 8 n
after he haB induced someone to buy an Edison
any type* ■ ' ,
of
Mr* Thomas Graf. No. 2.
If the Attachment Proposition is a good one, this one appears
to he hotter, beoause it begins at the ground up by induoing
the sales of maohines, with the after record sales resulting.
It is impossible to supply you at this time with any printed
matter or descriptive circulars because they have not yet
been prepared, but I will take great pleasure in seeing they
are supplied you at the earliest possible moment, and you
may then determine whether or not you oan put it into effect
with your trade.
Assuring you of my desire to co-operate with you in every
way possible, I beg to remain,
Yours very truly.
National Phonograph Company,
Manager of Sales.
165.'
A
MEMORANDUM
Mr- Stevens :
p/^-?
psf1
6/13, /10.
Referring to Kr» Wypor's letter of May 4th, 1 huvo
discussed the question with Mr. Edison of taking out insurance
in Australia to cover our possible loss of profits in oaso of a
fire where all of the stock is carried in a single building.
Mr- Edison thinks this should bo done, provided tho cost does not
substantially exceed 50 Pounds per annum, as suggested in tho let¬
ter from Thomas Davis & Co. Will you ploase see that this is done.
FLP/l’.vl? P. !>• D.
Eno-
»•>
A
-ta£, ■
MEMORANDUM
Mr. Stevens: ^ 6/13/10.
I discussed with Hr- Edison on Friday the question of what
would happen to our Australian business in case of tho death ox
serious illness of Mr. Wyper, and he is naturally anxious that
there should be someone on the fiold who would bo competent to
fill Mr. Wyper' s place in the event of either of these contingen¬
cies arising. Advise me what you know of Mr. Wyper1 b chief
assistant, end particularly as to his standing, reliability
and intelligence; and also adviso me if there are any otiier men in
the line of promotion who oould be relied upon if necessary.
ELD/IWY7 F. I- D.
NATipNAL PHONOGRAPH COMPANY .
Sept. -IS, 1910.
Ehomac Graf , Esq.,
National "Phonograph Company, ltd.,
Y/illesden Junction, Ion don,
England,
My dear Mr. Graf:- • .
When you woro hero I tolcl you that some
time tills Fall fro are seriously contemplating consolidating
the Edison interests lioro and "bring thorn all under a single
corporation having the name "Ehomao A. Edison, Incorporated",
or soi.no similar name in which "Edison" will "be used. I
think that similar changes should ho mado in Great Britain
and Australia, and believe that the nano "Edison, limited"
will "be a very strong advertising card. Without committing
yourself in any way I wish you \70uld discuss this matter with'.
Mr. Marks and soo if there is any legal objection to this
change being made. It might very properly include a consoli¬
dation of the National Phonograph Company, ltd. and the Edison
Manufacturing Company, ltd. under a. single corporation. ' let
me know if this schomo can bo carried out in Great Britain
and what the cost will bo. Also, what formalities will have
to be obsorvod in the way of documents, otc. Of course, you
will understand that I do not want to have this matter- gone
PHONOGRAPH COMPANY
#2 - Thomas Graf, Esq.
aiiona A-/ith definitely at the present time , but would lilce
to be fully advised as to what will- have to bo done so that
if the change is put into effect, it can bo nttondoft to with¬
out delay .
YQurs very truly,
EID.ARK.
President.
Ootober 6,1910. .
Thomas Graf, Esq. ,
Mgr. -national Phonograph Oo. , ltd.,
Wi lies den Junction,
Iionaon, England.
My dear Mr. Graf:-
When you were over hero 1 think I
told you generally about our new Bcheme for interesting
desirable dealers throughout the country in the sale of
Edison phonographs and records by a house to house canvass
and a free trial. The general scheme is as follows:
We go to a Jobber and ask him to designate a num¬
ber of desirable dealers who are financially responsible
and who are interested enough. to try out the scheme. We
offer to furnish the dealer a special wagon at a rental,
price of §4 per month, the wagons being equipped with
special raolts end boxes to carry the phonographs and
records and having an ornamental' panel on each side and
back, indicating its character. To handle the business
effectively requires an initial outfit of forty machines.
The dealer
and these machines are supplied to the dealer^ on ■oonsiga.-
#2 - Thomas Graf, Esq. ,
then makes a house to house convass ana leaves a phono¬
graph and one or two dozen records at any placo where there
seems to ho a aosirahle prospect. Two or three days later
tho dealer oallo around again ana endeavors to make a
sale, if possible , Trot if not the machine and records are
taken away. If possible, salos aro made for cash, but in
any ovont the records selected aro sold for oash and an
installment leaso is signed by tho purchaser to pay for
the machine on tho installment plan. A copy of each in¬
stallment lease is sent to tho jobber and another copy
is sent to us and a now machine is supplied to the jobber
for tho dealer’s uso for every installment lease that is
thus sent us. We aro giving the jobber three months’
time to pay for the goods, taking his non- interest bear¬
ing note for the same and in rottim the jobber gives the
dealer 'four months' time.
I hand you herewith a memorandum from Mr. Good¬
win addressed to me, that is designed to give you complete
information regarding the details of the sohome , and which
is accompanied hy forms and photographs which I' think you
will find interesting and which. you may bo able to make
uso of. If thore are any points that you do not fully
#0 - Thomas Graf, Esq. , ■
understand, please write me ana I will have the questions
answered, by Mr, Goodwin. % purpose in writing to you
at this time is that Mr. Edison has spoken to mo a number
of times about the desirability of having you try out
this scheme, if possible, in. England. A trial of two
wagons might bo started in the outskirts of London ana
kept close traok of Jiyuyou, so -that you can see how the
scheme would probably wotfc out if extended all over the
oountry. With the photographs indicating tho kina of
wagons we use here, you will have no difficulty in get¬
ting up a suitable wagon that wouia more nearly approach
the English conditions. I want you to try out the sojjeme
as indicated above and give it a fair ana impartial
trial and ao all that you oan to have it succeed. 1
think you will havo no difficulty in finding at least '
two goea dealers in London, who will be enthusiastic
enough to give it a trial, but in conneotion with thiB
trial you want to give them every necessary assurance of
standing baok of them, so that they will not bo afraid
to go ahead and make the experiment. We are very enthusi¬
astic about scheme over here and believe that it opens
up a great opportunity for disposing of a large number
Of phonographs and reoords. As you know, the Singer
Sewing Machine Company disposes of its machines almost
#4 - Thomas Graf.NgBq,
entirely by thiB method and I see no reason why phono¬
graphs cannot he sold as readily as sewing machines.
I also see no reason why the scheme could not he effect¬
ively carried out in England, and perhaps pore effective
ly than in this oountry, although perhapB details will
havo to he varied to suit the ohanging conditions. At
any rate 1 wiBh you would look into the matter very oare'
fully and if you have not time to do it yourself, please
turn it over to some one who can take it up and give it
serious thought. Advise mo fully just what you think
ought to he done and whether you believe the plan oould
he carried out with possible modifications in your terr¬
itory, and after a trial has been had in England then we
can take up the question of possibly extending it into
other countlies.
I might say in conclusion that this plan is one
that Mr, Edison evolved himself almost to the final de¬
tails and we are, therefore, anxious that it shall he
given an absolutely fair trial and we all believe that
it can ho made a groat succosb.
Yours very truly,
FED/ AHK, President.
Enclosures, '
London, October 11th, 1910.
Lear Mr. Byer:
With reference to a ran for the London office have so
far not found anyone better suited than St. I have had two
meetings with him and he would be willing to come in view of the
new line, which he considers the coming article. He is of the
opinion that the needle cut disc has exhausted its possibilities
(technical not commercial) as compared to the phono cut disc,
and we also discussed the Victor-Gramophone people and the rumors
which they are spreading amongst their factors in anticipation
of our disc . They only have learned in a general way of your
new departure and are confidentially advising their factors that
as a counter move they will follow on the lines of their
past policy, by bringing out a competitive disc, probably as they
have done in previous similar instances, by a distinct firm.
Beside the Gramophone Co. they have as you know, two subsidiary
companies. 1. The Zonophone Co. distributing the Zonophone
machines and discs, the latter cheaper than the Gramophone disc.
2. The Twin Co. distributing the still cheaper Twin record.
But we were agreed upon this that whereas they had to deal in the
past with competitors financially very much weaker than they are
themselves and against products in which they had a longer and
better technical experience, the phono cut disc is new to them,
and at the least they begin with not more technical experience
than we do. If they bring out a phono cut disc merely for
competition temporary, a cheap and poor record such as the Twin
was at the beginning, their move will fail against a superior
phono cut disc, and if in order to more successfully compete,
they improve it technically and by recording some of their good
.talent on it, they will popularize the phono cut disc, help us to
create a market for it against the needle disc, and thus defeat
their own aim. This by the way only.
Hr. Sterling was afraid that with a high class
product bearing Mr. TUdison's name, we would consider it super¬
fluous to pay him what he would expect. In other words he con- in¬
siders himself much more valuable to a smaller and weaker company
whose sales he can increase by his salesmanship to figures which
they would not reach otherwise. But between you and me, I
think the best man we can get, is just good enough, the fight
which we shall have will require a first class man for every
territory. He tells me that he does not get any salary in his
present position, the Columbia pay him a turnover commission,
limiting same to a maximum of £2000.00 ($10,000) He says that in
the short time he has v/orked for them, he has so increased their
business, practically nil, when he started that he expects to
reach the maximum commission in the first year.
I don't want to be overhasty, and so I have given
myself time to think over a proposition which I could make him,
and which of course would have to go far beyond that we discussed
at Orange, Of course', if he accepts it will be understood, that
on our part the proposition is not final, but subject to your
approval and suggestions. I shall meet him again to-morrow night
and knowing the disc trade aB he does, I shall abk him what
turnover he thinks he can obtain the first year, all things being
-3-
normal and suited to local conditions and his own figures will
enable me to formulate my proposition. I think he will be
very sanguine in his estimate of the turnover, which is of course
so much the better for arriving at a suitable commission per¬
centage. He has no agreement with the Columbia people, but could
not leave them in a difficulty, he considers four months an
adequate notice, but is of the opinion they would not wish to
keep him long after notice, knowing that his interests would be
with the new position and company. You will hear from me as
soon as I can give you further news.
In referring to this matter please mark letters
"strictly confidential" to avoid any difficulties and unpleasant¬
ness which may arise from premature spreading of information.
Please excuse my scribbling.
Sincerely yours,
(Signed) Thomas Graf
[ATTACHMENT]
FLINT & C?.
bro/s,d-exchange.
Thomas A. Edison, Esq.
Orange, II. J.
-w ^<u.cr
„ a * /n.
. v "
R . S . T . -E .1.1. VI.
YOGRAPH COMPANY
October 13,1910.
Mr. Thomas Graf,
National Phonograph Company,
V/illdacLen Junction,
Eondon, England,
My dear Mr. Graf
1 have before me the Balance
Sheets and Profit and Loss Sheetsof the London., Paris
and Berlin branches for the five months ending May 3lst,
1910, as compared with the same period of last year,
and 1 am again constrained to write you regarding the
poor showing that is made in the hopo that something
may be done to improve the situation. The statement
of the London business shows that with sales of over
sV'122,000, the actual net profits were only $1,152.82.
It is true that for the corresponding period of last
year there was a deficit of $521.34, and that the
sales last year wore about $9,000. more than this year.
At the same time, it must be admitted that a business
that 1b netting Iobs than one per cent profit on the
sales is in a very prooarious and unsatisfactory con¬
dition, so much so that very small items of additional
NATIONAL PHONOGRAPH COMPANY
#2 - Mr. Thomas Graf,
expense would entirely wipe out the profit. As a matter
of feet, I have not tho figures before me, but I have no
aoubt that the London business is losing very heavily
for tho reason that the recording, expenses of the English
business are absorbed in the genoral recording expenses
of the American business and records are sold to you,
therefore, actually below cost. In other words, if we
took your entire recording expenses and addal.fc’the dead
cost of labor and materials on the record, wo would find
that the price wo quote you would be very much Iobs than
the records aotually cost us. I do not say this at all
in the spirit of criticism, but merely point out what
tho exact situation is. Of course, the loss is attri¬
butable almost entirely to a falling off in sales of
Standard records, because there is a small actual in¬
crease in the sale of Amborol records. If the phonograph
business was like almost any other business and we were
selling you exactly the same articles that we sell in
this oountry and quoting them to you at actual cost,
then any profit you might make in selling those artioles
would be just so muoh money ahead, but we must remember
that the phonograph business is . in the nature of a pub¬
lication business, and while we are issuing one edition
of the publication in this country, wo are attempting to
issue special editions of the publication in England,
France and Germany. \ If McClure ’ s Magazine , for example ,
NATIONAL PHONOGRAPH COMPANY
#3 - Mr. Thomas Graf.
attempted to put put a special English Edition with
different, articles to suit the English taste, it could
not ho made a success unless the English business were
large enough to absorb the entire expense, and this
is the situation whioh aotually confronts us. These
statomonts showing a continuing bad business in Europe
are most discouraging to mo , and I have the greatest
difficulty in explaining them to Mr. Edison. The
film business seems to bo fairly good, and I believe can
be substantially increased, but are we not foolish in
allowing the profits on tho films to be eaten up by
losses on the phonograph? And we must remember that
all of those losses whioh take place in tho foreign
business eventually have to be assumed by the American •
business. I am getting around to the point- of view
that so far as the phonograph is concerned, it is hope¬
less in Europe and that we had better realize that faot
before continuing for an indefinite period in tho bus¬
iness. The amount of the sales and the oost of mniHwg
sales are so small in one case and so large in the other
that there seems to be no Opportunity of making profit.
All of this, of oourse, is probably unpleasant, but we
understand each other well enough to have a perfectly
frank discussion of the subject. Do you really think
it is possible to continue the phonograph business and
ovontually make it a success? If you do , I wish yOu
NATIONAL PHONOGRAPH COMPANY
#4 - Mr. Thomas Graf.
would write me, telling me just what you foel the future
holds for us. You raoy say that with the coming disk
machine wo ought. to he able to build up the business
again, but bear in mind that if we do put out the disk*
we will have very largo recording expenses which will
have to bo absorbed with the business.
When you were over here I mentioned to you
the possibility of ghirfeing some jobber or other repre¬
sentative in Great Britain, handle the phonograph bus¬
iness and get what he oould out of it. If this oould •
be done, wo might bo able to handle the film business
in such a way as to make profit, because the expenses
would probably be small. What I would prefer, if poss¬
ible, would be to hawe some one handle the business and
use only tho records we mako in this country, so that
we would know exaotly what they would cost us, because
1 fear that if the attempt is made to make Bpecial Eng¬
lish records, there nevor oould be any hope of building
up a business that would bo sufficiently large to absorb
the necessary expense. How if. that is the situation and
if the English business cannot bo brought to the point
of absorbing recording and other expenses, why should
we not faoo the situation clearly and stop it?
So far as Berlin is concerned, the statement
which 1 have is relatively enoouraging, booause it
shows a net profit for the five months of §2352,09, as
NATIONAL PHONOGRAPH COMPANY *
#5 Mr. Thomas Graf.
against a defioit for the corresponding period of laBt
year of $8,191.34. As the same time the net profit on
the German business amounts to only about on the. sales
which is still far bolow what it should be. And, in the
German business, as with the English business, we are
probably deceiving ourselveB in those figures, because
tho net profits are undoubtedly much smaller if they
exist at all, owing to the fact tho Gorman business does
not absorb the entire recording expense. last year in
Germany, the gross profit on films amounted to $17,053.32,
and I have no doubt that if you oaloulate the expense of
handling this business the profits on films alone, would
more than equal the not profits above referred to. There¬
fore, tho situation in Germany is that the profit we are
making on films are more than offset by the. losses that
are incurred in handling phonographs. Considering the
size of Germany and tho character of her people, it seems
to mo that the sales that are made in that oountry are
so small that they are practically negligible. In other
wordB in a country with a population of over 40,000,000
people, our ontire phonograph sales are probably loss
than $75,000 per year, tho gross profit not more than '
$12,000. Whon you take into account tho expense of mak¬
ing these sales tho wholo thing is bo small as to be
hardly worth considering. Germany 1b the home of ohoap
NATIONAL PHONOGRAPH COMPAQ
ff 6 Mr, Thomas Graf.
talking maohines and cheap records, and with the Customs
Tariff in vogue in that country, I really do not see
how it is possible for an American manufacturer to make
effective headway in this business. Therefore, basing
my opinion on the' reports before me and what I have
thought of during the past two or three years, I really
beliove we ought to fafcie the situation frankly and if -
we oonolude that the situation in Germany is hopoless,
to take the bull by the horns now and close up the
phonograph business. Of oourse, I want to got your own
views, but I wiBh you would consider it in as broad a
light as possible,, and tell me frankly what you think
we can do.
The showing of the PariB offioe is, of course,
a little better than last year, but there is still a
deficit of §1997.52 as. against §3656.77 for last yoar.
Yet, if the French phonograph business closed up end
wo limited ourselves to films, we might be able to make
a small profit in France. Wfty should we not do this?
What possible show have we got in Paris against the
cheap Frenoh and Gorman maohines, when we consider the
tremendously greater amount of sales of the Pathe Com¬
pany, for example, to mention only one instance? Our
entire sales in France do not exoeed §26,000 a year,
and this, of oourse, is absurd, and probably less than
NATIONAL PHONOGRAPH COMPANY
#7 Mr. Thomas Graf.
1% of the sales of the Paths Company. Think over the
things I have said above, and boll eve me that 1 am only
seeking advice, and am not speaking at all in the way
of oritioism. The situation is so discouraging that
perhaps I may bo writing in a more pessimistic frame
of mina than I would bo if 1 had a few days to think
over these reports, but these are the ideas that occur-'
rod to me immediately after looking over the reports
and analyzing them.
Yours very truly,
PED/ABK.
Pros! dent.
10735.
EDISON-EESELLSEHAFT n. h.h.
EDISDN-PHONDBRAPHEN u.HIILDEUSSWALZEN.
PR I ED R ICHSTR. 10.
receipt of which I have already acknowledged in an autograph
letter, in which you review the records situation very pessimis¬
tically: I have been thinking a good deal over it, and although
I am not able to Bay anything very encouraging about the situation
at present I think your gloomy view as to the outlook iB not quite
justified. Generally speaking, the cylinder business is bad, and
although I have hesitated so long to own it to myself, X have
come round to the view that with the present means at least a
large business cannot be expected. The tendency of the public
is towards the disc, for very simple reasons, which in time were
bound to tell. Leaving out of consideration the question of
quality of Bound ? the disc machine, has been reduced to such a
simple mechanism* that with the exception of the motor it practi¬
cally cannot get out of adjustment, and it requires not the least
intelligence or care in handling. The user simply puts the
disc on to the table of the machine, starts the lever, lowers
the speaker , and that is all that is to be done. And the phono-
graph party'' if I so may call it in distinction of the motor part,
will practically never require adjustment. The phonograph part
fidison-Oesellsch
BERLIN S
November 14th 1910
Frank L.Eser: -2-
X*- I
in distinction of the motor part consists of so many different
parts liable to get out of order, consequently requiring more
care etc. etc. , that the simplicity of the disc machine must in
time contribute to its popularity. ■ Then again the disc record
for all practical purposes unbreakable does not require the care
of the cylinder records, often scratched, cracked etc. Another
advantage is in the commercial methods of the disc business over
here, where it has been an established practice for many years
that the disc user may return any discs he no longer wants to the
dealer, and on purchasing a new disc a substantial allowance is
made on the old disc returned. These and other advantages have
compelled European manufacturers to leave cylinders and cylinder
machines alone and turn to the disc , with the result of their
influencing by their activity and advertisements etc. the prevail¬
ing tendency towards the disc on the part of the public. To-day
we are practically alone as cylinder aB well as phonograph manu¬
facturers against a host of disc manufacturers, who find their
line a profitable one.
What the possibilities are of the disc business over
here, is perhaps shown to you from the enclosed cutting, a report
of the European Gramophone Company, for the year ending June 30th
1910, theifc/profits being 1.155,628 or practically ^778,140. Then
next to the Gramophone Co. there is the combination Odeon-Eonotipia-
International Talking Machine Co. , who do a large and profitable
business. Then there is Pa the , and after this a host of smaller
concerns, who find it pays them to do business. Even the Columbia
Phonograph Company, who have practically withdrawn from the Con¬
tinent after they had neglected for a long time the Continental
November 14th 1910
Edlson-Qesellschaft m. b. H.
BERLIN SW. 48.
Frank I,. Dyer, Esq:
recording end of their business, find a profitable outlet in
England where they do business , of course not to be compared with
that of the Gramophone Company, but still of sufficient amount
to be profitable. For this assertion , -however , I have no proof
but my personal conviction formed from reports and conversations,
and X think it is quite logical to assume that in a field where
the Gramophone Company can make profits like those named, the
Columbia Phonograph Co. in their infinitely smaller efforts are
able to get a share in the business that will pay them. Now we ,
are about to launch into that field, and it would be sad in my
view if we crept back as far aB Eurpe is concerned.
It is true, the recording expenses are important,
perhaps too important for the cylinder, business with the small
margin of profit and its smaller possibilities of distribution.
But is it not different with the new disc line? Will not a good
part of the general recording expenses have to be incurred whether
or not we make special discs for European countries? Will it not
be necessary, or if not exactly necessary, at least to your ad¬
vantage to maintain one recording centre and two or three record¬
ing rooms in Europe?
Please look over the report of the Gramophone Company.
Perhaps you will then be able to come to some decision one way
or other, which will give me, a basis on whioh we can work here, and
that confidence which is necessary for any success. Do not mis¬
understand me,- I do not consider what you write as undue criticism,
the record situation warrants an exchange of ideas on thatplan,
but I think conditions are quite altered since the decision was
Edison-Oesellschaft nt. b. H.
BERLIN SW. 48.
Prank L.Dyer , Esq.
November 14th 1910
-4-
taken at Orange to issue a disc , and we should make up our minds
a long time ahead as to what we are going to do, so that we can
work here with confidence, knowing that what we are doing and
preparing now is being done with effect and results to come some
time in. the future, without fear that this or that preparation or
action is. hardly worth while the trouble, as it might be over¬
thrown at any time by a sudden decision to withdraw. It is need,
lesB to paint or describe the awf u.lly laming effect of such a
situation, which of course is not brought about by your letter of
the 30th but was more or less present ever since the discon¬
tinuance of the European factories.
I must anticipate here that in order to do a disc
business it will be absolutely necessary that local records are
periodically issued. ThiB can be done on a smaller scale in
addition to the larger issue of the American records as far as
they are suitable for our market , but on however small a scale it
is done, it must be done, otherwise also the market for the American
records will be lost, or it will- be so small that it is practically
lost.
As to the saving of recording expenses I think I can
move very well in the direction indicated in your letter.
Paris, The French cylinder business is so small that it is not
worth while to go to any recording expenses, and this- saving has
been effected to some extent in the past, that is, as you will
notice from the French repertory, we are issuing very few French
selections only. But this can be carried further by discontinuing
November 14th 1910
Edison-Qesellschaft m. b. H.
BERLIN SW. 48.
Frank L.Dyer , Esq.
to make French records altogether. This would not necessitate
the giving up of the French office, as this office will pull
through without any loss to us through the film business and the
Commercial Phonograph business they are doing there, and we need
the French office to take care of our film orders and film ship¬
ments, so we will have to continue the French office if for nothing
else, for the sake of the Eurpean film business. At the same
time they can go on doing such business in cylinders as they may
get for the old selections. Therefore, unless you come to some
general decision, what I should like to know is this;
1) Do you want us to discontinue the making of the few
French records ' on the scale of the past two years?
2) Do you want to give up the Paris recording rooms, or
should we keep them for your purposes? It may be necessary from
time to time to make records for you in Paris, and a single re¬
cording trip to Paris without the ubo of the established quarters
will in loss of time and expenses in search for suitable temporary
quarters, and perhaps the unsatisfactory results obtained in such
quarters, cost you considerably more than the rent and up-keep
of the Paris recording department, which according to American
ideas is a nominal expense only. There need be no regular staff
at the recording rooms, in fact we have for the past two years
had no Paris recorder, the French records being made by our staff
in London on their periodical visits to Paris.
Berlin. The record situation also here is not encouraging. It
is not such that it would warrant our going to large recording
expenses , and I would suggest an arrangement on a similar basis
as in Paris. The rent of our recording rooms here 1b Mk.2800 p.a.
November 14th 1910
Edlson-Oesellschaft m. b. H.
BERLIN SW. 48.
Trank L. Dyer ,Esq. -6- 1
This is slightly increased by the up-keep of the rooms, telephone
etc. What T should like to know now is:
Do you want me to arrange matters here in the same way as
in Paris? I would be quite in favour of it. Tirstly, because
the record business does not warrant large recording expenses;
secondly, if we branch out into the disc business, we can sell the
American disc and can periodically make German discs by a staff
from London, which is quite efficient and sufficient for that
purpose.
I have already written you in my autograph letter
regarding the figures you gave about Berlin, the result which I
reported to you being more favourable, the net profits ofl/the
gross sales being above 12^. X also enclose here 2 comparative
statements of the gross sales and general expenses for 1909 and
1910, which show an increase of business and a considerable
decrease of the expenses during the last seven months.
London. I am very confident that a more important business can be
done there with the disc, England in fact is the country which
is responsible for the greatest part of the profit of the Gramophone fir
We cannot do business there without some local records, but we
shall be able to use with advantage the greater part of your own
records. In that territory also, although reduction in the'
expenses may be enforced, I think you cannot do without a record¬
ing department foryiur own. or- the American records. Therefore
I have nothing to suggest but to keep it until we get into the
disc business. It is quite plain that England and also the
Continent, if we should make continental discs, will and should
l. b. H.
November 14th 1910
Prank L.Dyer , Esq.
assume the recording expenses for the European records , and they
will he able to do it, and obtain a profit.
The transfer of the cylinder business to a factor is to
me personally out of question. Even if the factor did not know
that we are going into the disc line, it would be impossible, for
me at least, to effect an arrangement with a factor satisfactory to
us. No doubt some one factor would be glad to have the Bole
agency, but no one would relieve us of our stock or good part
of the stock, and in my opinion it would be only another form of
the end of the cylinder business, as we could not give any factor
sufficient profit to re-factor our goods, even if we could at all
get thepresent factors who were on the same basiB with him in the
past to become his customers in future,- jealousy etc.
would prevent them from buying from him.
I therefore say: keep <W, provided you are in a position
to place the disc on the European market, on the English market
within the next 4 or 5 mlnths. I will be able to report to you
from London in a few days with regard to the man I have in view,
and if we could come to some arrangement I am convinced we shall
do well in England with the disc.
Under the heading Berlin X forget to mention something:
the bad situation in which we are there has been created-fWditly
through our giving up our Berlin plant. When we had the Berlin
plant we assumed all the recording expenses, and the Berlin factory
was still able to manufacture below the price at which we are now
buying from you. In addition to this we have now to pay freight
and the not inconsiderable custom duty, and we are behind with
novelties by three months, whereas formerly, if necessary, we
November 14th 1910
-8-
Erank L.Dyer ,Esq.
could issue them within a few weeks. I think the dismantling
of the Berlin plant, againBt which I fought, as much as I could,
was a mistake which is co-rssponsible for present results.
I would also anticipate that at some time in future,
when it has been shown that a good and profitable business can be
done over here, it will be of advantage, in order to increase
the profit, to have some small plant at least somewhere in Europe,
where the most necessary disc hits can be turned out Without
unnecessary delay, while the bulk of the goods may be obtained
from Orange.
Please have a talk about all this with Mr. Edison, and
write me a few lines giving me your and Mr .Edison's v.iews, and
be sure that X will not take ill any criticism.
Yours very truly,
i —
MANAGING DIRECTOR ^
[ATTACHMENT]
Bdlson-Gesellschaft m. b. H.
BERLIN SW. 48.
Ve rkftufe und General-
Unkosten
Januar-Dozomber 1909
19B9
Verkbufe
General -Unkosten.
lanuar
Mk.
43647,—
Mk.
15724,—
Februar
"
48401,—
Mk.
12507,—
Marz
"
31669,—
»
15148,—
April
35788,—
■
15302,--
Mai
"
58450,—
"
19874,—
Juni
"
29022,—
-
22254, —
Juli
"
34191,--
«
20934,—
August
"
47994,—
■
21596,—
September
"
52029,—
-
24026,—
Oktober
"
56199,—
«
33661,—
November
" •
90246,—
"
307 85,—
Dezember
"
10623,—
"
27850,—
sa.
Ilk.
538259,—
Mk.
259661,—
[ATTACHMENT]
Verk&ufe- und General-
Unkosten
Januar- Sept ember 1910.
GroBB Sales
1910
Verkftufe
Januar
Mk.
85352,-.
Februar
"
62441,—
Harz
69182,—
April
73878,—
Hal
51588,—
Juni
54072,—
Juli
41985,—
August
56638,80
September
75892, 65
General Expenses
General -.Unkosten.
Mk.
25816,—
"
23121,—
"
212eo, —
15960,—
17744, 64
10969,—
16245,—
11931, 44
12714, 68
Sa. Mk. 571029,45
Mk. 155781,7 6
MEXICAN NATIONAL PONOGRAPH CO
EDISON MANUFACTURING CO.
BATES MANUFACTURING CO.
T' Tacuba No. 33.
, IJU,
ORANGE. N.J..E.U A,
FONOGRAFOS Y FONOGRAMAS
KINETOSCOPIOS DE PROYECCION
Y PEL1CULAS
ORIGINALES EDISON
DATERIAS PR1MARIAS Y VENTILADORES
Nov. 17, 1910,
National Phonograph C° . ,
Orange, N. J. , U, S. A.
Dear Sir:«*
As previously advised, Messrs. Hosier, Bowen & Cook have
purchased the entire stock of amusement Phonographs which we were
oarrying at the Mexican office, and I enclose herewith copy of an
order placed with us by Hosier, Bowen & Cook, covering various
Phonographs and Records.
I also enclose herewith copy of my letter addressed
to Hosier, Bowen & Cook, under date of the 10th Inst., having
reference to future business and I trust the terms mentioned therein
will meet with your approval.
Mr. cook haB not formally acknowledged receipt of my
letter, but on taking up the matter with him verbally, the conditions
as noted in my letter were acceptable to him.
Yours very truly.
MANAGER FOREIGN DEPARTMENT.
w.s.A.r.m.
[ENCLOSURE]
MEXICAN NATIONAL PHONOGRAPH CO.
0
0 P Y .
Order No. 1011
Mexico, D. P. , Nov. 17, 1910.
To National Phonograph Co,, Orange, N. J.
Please Ship to Mosler, Bowen & Cook, Buor. , Mexico City, Mexico.
c/o H. C. Glenn, Customs Agent,
Veracruz.
Via Ward Bine and Mexican By,
PACK POR EXPORT
Order number, gross and Legal . we ight and measurement
must appear on all packages and also on invoice
Marks
M. B. & C.
No. 1011.
N
A
10 Gem Combination Phonographs
20 Pireside Phonographs with Cygnet Horns.
20 Standard Phonographs with Cygnet Horae (Combination Type)
5 Home Phonographs ■ ■ " " " »
2 Triumph Phonographs h * * n n
. 1000 Edison Standard Shaved Blanks
8 each all January American Vocal selections
15 each all January American Instrumental Selections
100 each all Jnauary Mexican Instrumental Selections
75 each all January Mexican Vocal Selections.
3 Home- Straight Horns and Cranes, Black
3 Triuyiph Straight Horns and Cranes, Black.
Ur* - • A _ i
(Signed) Geo. M. Nisbett,
[ENCLOSURE]
MEXICAN NATIONAL PHONOGRAPH CO.
Nov. 10,
1910*
Messrs. Hosier, Bowen & Cook, Suer.,
Apartado No. 658,
Mexico, D. F.
Attention of Hr. Geo. w. Cook*
Gentlemens- *
Confirming the verbal arrangement in connection with
granting you the exclusive sale of our Phonographs and Records in
the Republic of Mexico, I beg to submit the following proposition*
On all purchases covering Bdison Phonographs and
Records we agree to allow you the following discounts based on
United States list prices:
Phonographs:
"G«ns" . . . . 5Q#
"Firesides", "Standards", "Homes",
"Triumphs", "Idelias" & "Amberolas" . 60$
Records:
"Standard" 2 minute Records . $.13 net
"Amberol" 4 minute Records . . 15 net
"Standard" 2 min. G. 0. Reoords. . . . . $.32 net
"Amberol" 4 minvG. 0, Records , . (ittst $1.00) Net $.37
Special Royalty Grand Opera "Amberol"
Records (List $1.50) $.57 net (List $2.00) $.77 net
Terms:
The prices as above quoted are positively net and no cash
discount will be allowed. We shall be pleased to grant you a credit
[ENCLOSURE]
MEXICAN NATIONAL PHONOGRAPH CO.
8,
M. B. & C. Cont'd,
of four month* from the date of Shipment from New York, goods
deliTered f. o. h, vessel Hew York, no charge for packages.
Advert icing.
We shall endeavor at all times to keep you liberally
supplied with all advertising matter as issued by our factory, same
to be supplied to you free of charge f. o. b. vessel, Hew York.
In reference to your request that we make you an allowance
to cover the oost of advertising our goods in the Republic of
Mexico, this is a matter that the writer will be obliged to take
up with our President, Mfc. Byeri
We shall be pleased to supply you with a full list of
our Jobbers and Dealers in Mexico, and also a further list of
parties to whom we have sold our products at list prices and we
further agree to assist you in every possible manner to build up
a large and lucrative business.
Execution of orders received from Mexico by this Company.
If at any time it is; deemed advisable for us to exeoute
orders received from Jobbers, Dealers or list price customers in
Mexico, we shall only do so with your permission and if this is
granted we will at the earliest possible moment after the sale is effec¬
ted render you credit representing the difference between the value
of the goods as Invoiced to you and the price at which the goods are
sold.
Duration of agreement.
This agreement is to remain effective so long as we are
satisfied that the trade is being properly cared for, and should you
at any time desire to cancel same you can do sp upon giving us 60
[ENCLOSURE]
MEXICAN NATIONAL PHONOGRAPH CO.
3.
M. B. & C. Coat'd.
notice, in writing and we, on our part reoerre the same privilege
should we at anu time feel that we are not being properly represented
by you.
We can assure you, however, that appreciating the importance
of your esteemed house and anticipating that a large business will
follow should our proposition be accepted, we are sure that the
agreement as above outlined will prove mutually beneficial.
.AgsassESfr
The matter of enforcing our agreements must necessarily
rest with yoy but it is understood that our prices must be maintained
and should you at any time find that our agreements are being
violated by. the Jobbers or sealers, their supplies should be immediate¬
ly cut off*.
Consignment
We agree to leave with you on consignment Records, the
number to lie designated by our Mr. Stevens, and an inventory of
such Records will be taken in the presence of your representative and
turned over to you, it being understood that these Records are to
remain the property of the Rational Phonograph Company, of Orange,
R. J. , U. S. A., and a record of the sales shall be carefully kept
and at the end of each six months period dating from the time to
stock is turned over to you, an inventory is to be taken and payment
made for such Records as you may have disposed of.
These Records are to be consigned at the following prices:
"Standard" Records, cut-out Selections at
$.10 each, Mex. Cy. , or its equivalent,, $.08
Gold.
[ENCLOSURE]
^ MEXICAN NATIONAL PHONOGRAPH GO.
4.
M. B. & C. Cont'd.
" "Standard" Current Records, $.24 each, Mex.
Cy. , or its equivalent $.12 Gold,
Should we at any time deem it advisable to request the
return of the Records consigned to you, to the factory, we reserve
the privilege of doing so(
We trust that the proposition as outlined above will
prove acceptable to you and we can assure you that should this matter
be brought to a successful issue we shall render you every assistance
possible in this entire matter*
After giving this matter due consideration we shall be
pleased to have you advise us at the earliest possible moment
as to your decision*
Tours very sincerely,
MANAGER FOREIGN DEPARTMENT.
w.s.A.R.m,
P. S. It is also further understood that the stock of Records
left with you on consignment will be insured at your expense and
for the account of the National Phonograph Co., Orange, N. J.
National Phonograph Company Records
Correspondence, Domestic (1911)
This folder contains correspondence and other documents relating to the
commercial exploitation of phonographs in the United States. Most of the items
are letters to and from Frank L. Dyer, president of NPCo. Other correspondents
include Leonard C. McChesney, manager of the Advertising Department; F. K.
Dolbeer, manager of sales; and Leo H. Baekeland, owner of the General
Bakelite Co. Included are letters pertaining to the manufacture, distribution, and
sale of phonographs and records, as well as correspondence about litigation,
patents, and other legal matters. Among the documents for 1911 are letters
concerning the Advertising Department, the dissatisfaction of jobbers and
dealers with obsolete record stocks, and the possible use of Bakelite in records.
Also included are notes regarding the equipment and supplies necessary to
manufacture disc records.
Less than 1 0 percent of the documents have been selected. Among the
unselected items are letters regarding the business of individual dealers or
jobbers; material pertaining to California trademark legislation; and an advertising
plan prepared by the Calkins & Holden agency that was never adopted.
NATIONAL PHONOGRAPH pOMPANY
Jon. 3, 1911.
Dr. L. K. Baekeland,
General Bakelite Company, _
.100 William St. , Hew York.
Dear Dr. 'Baekeland:
Your favor of the 20th ult. was duly ro-
oeivod. Should v/o find that Bakolite its the proper nutorial
to use for our now disc records, the general proposition you
rnako is satisfactory, namely, to pay a royally for records
with a guaranteed minimum. The figures you mention, ' however,
aro in my opinion prohibitively large. The phonograph busi¬
ness is already subjected to heavy taxes in the form of royal¬
ties to be paid to artists and royalties to be paid to music
publishers , and the business will not stand too much of an ad¬
ditional tax, since phonograph records are becoming more and
more expensive to soil- The public has quite a mistaken
idea as to the profits which aro made, in the talking machine
business. It is largely a' business where a great JJUBI^ostrfii
articles aro sold on a relatively small margin of profit.
For instance,,. Mr. Bldridge R. Johnson, President of the Victor
Talking Machine Company, in a letter which appears in the
!3. l/3/ll • NATIONAL PHONOGRAPH COMPANY^1’’ BaSkOlOJld.
Talking Maohino World of July 15 , 1910, (page 07) said:
"We do not make large percentages of profit. let me
give you a few facts and figures: We ooixld invest the capital
invested in our business in Pennsylvania R. R. stock and pay
twice the dividends we havo boon paying for the last ton years,
bosidos accumulating a surplus that would double our capital
eventually. The Victor dividends now not but 2# of the actual
assets of the company, aftor 'Counting good-will, patents and
all our unostimated valuable matrices at the sum of $2.00 .
. With all tho3o things, wo are content with loss actual
profit anu less dividends per capital invested than the Penn¬
sylvania R. R. or any other concern wo know of."
Assuming that 40,000 records per day are made, which
you stated was the number manufactured by one of our competi¬
tors, your royalties at 3 cents each would- amount to $360,000
a year, which, capitalized at Ctjl, would mean that this relative¬
ly small branch of your busines would be' figured- at $6‘, 00,0,000.
To put a prohibitively la-rge tax on the possible use
of /Bake lit®' would 'bo a discouragement, because, 00 I have ex¬
plained to you, wo do not like to lot the opportunity go by
of trying out the mater' al and at the .sumo tine there would be
very littlo incentive to attempt the development unloss wo
wore assured that' in the event of success wo would bo in posi¬
tion to use it without paying a prohibitive figure. It ;
strikeB mo that under the circumstances (for a non-exclusive
lioense) a royalty of 10# of the figure you mention (i.o.,
3 mills per record) would be a very liberal one, booause
on an output of 12,000,000 rooords por year this royalty
would amount to $36,000. - Of course I do not- know how
successful we will be in marko ting tho diso reoords, but I
will toll you in confidence that' we have sold muoh more than
this in cylinder records per year. Undoubtedly tho business
will have to be dovelopod slowly, and . therefore I do not
3- l/3/ll. NATIONAL PHONOGRAPH COMPANY Kt1* I.. 11. Baekeland.
think the minimum royalties to ho guaranteed should go above
§15,000 por year. They might ho mado §7,500 for the first
year, §10,000 for tho second yoar and §15,000 for the third
and succeeding years. Of course if an exclusive license, were
granted we might he willing to pay more, hut oven if you gave
us an exclusive license, do you think you would ho able to
prevent othor manufacturers from using the same material?
I am advised by Mr. Aylsworth, who has looked very carof.ully
into tho situation, that a great deal of work had been done
with this material bofore you ontorod tho field, and I should
judge that it might not bo unlikely, if we mado a success with
Bnkolite , that our oompotitors would ho. able to use' tho sarno
material with impurity. V/e have found in other matters
relating to patents that they are shrewd and resourceful.
I hope' that you will take up this matter again
and that* upon reflection and in viow of the situation in the ,
talking machine business to which I have above referred
you will ho able to moot our views. .
Yours very truly,
FlD/lIYV/ ■ President.
\p ' K" V3
GENERAL BAKELITE COMPANY
3 WILLIAM STREET
New York, jan. 9, 1911.
Mr. Frank L. Dyer, ^
O/o National Fhonograph Co.,
Orange, N. J.
Dear Mr. Dyer:-
I am in receipt of your favor of January the 3rd,
which 1 have reaci carefully. Our standpoint is the following:
hae ?° sufficient technical superiority for phono-
graph records, uhere is nonuse of making any arrangement whatever.
ZZ.* °n 0uher ^aud, it has a technical or commercial suneriority,
ihv=++“,e ?ay . c?ns.iet either in a cheapening of the material, or in7
tiiaiian1, tecknical Product. You know that the psxx price of
!n?W is unusually low, and there is every likelihood that the
n^1ii,Siih«fiher after a while. But even assuming that the
?o1fe«0f ,sl}0lla° r0mains what is, you know yourselves that there
=??nsi5efable, savins in the cost if Eakelite he used, and if you
ha fai‘r°I^a+t0 mve ^1S Ea^elite yourselves. Now we think it would
n? W® ^suid receive a royalty which represents a portion
of the cheapening in the cost of production.
£v0W ??at no* only the oost of production of Bakelite is
cheaper than the selling price of shellac, hut our experiments here
ft0™ the F?ssibility of making records where the amount of
aaxeaite is considerably less than the amount of shellso used until
^?w‘ even if there wereno cheapening in the manufacture, t
t lie met that you would he able to send Bakelite records hy mail,
wn.ll be a considerable cheapening in the distribution of your -product,
tiow-a-days, if one or tv/o records have .to be sent to distant-' cus¬
tomers, the daiKH dealer has to. spend considerable more money for
expressage and for packing than the record is worth. The great
strength of Bakelite records allows them to be sent by mail, and
without the necessity of expensive wrappers.
If, beyond this, it can be demonstrated to the customers that
Bakelite records wear longer and have some other advantage, the
enaii royalty which we are asking, can be covered several times by
a slight increase in price, which the customer will pay you, and the
saving in the cost of manufacture.
, *n fact, if the talking machine business is in such a bad con¬
dition as^ you mention, this would givd1 you a chance of increasing
consideraoly your income, even after you have paid us the royalty.
You certainly do not mind paying us a handsome royalty if you can
see a way to earn two or three times more by doing so, and there is
where the whole matter hinges. If Bakelite has no commercial merit
tor your purposes, why that, of course, would end the matter. If,
°n other hand, it has commercial merits, and you can make a
profit thereby, it would be only reasonable that we should pet a
relatively small share of this.
GENERAL BAKELITE COMPANY
F. L. D - #3 jan. 9, 1911.
The figures submitted to you were based. on some of our own
estimates, and can stand on their own merits.
A- Royalty of §15,000 a year, if you do not make money by it,
would be a losing proposition for you, while a royalty of §100,000 a
year, if you oan make §300,000 by it, would be a paying proposition
for you. ' °
You ask us whether we would be able to prevent other manu¬
facturers from using the same material. I can answer that this is part
of our business, and we shall, of course, use all means to uphold our
Ky patents have been taken out with very much deliberation,
and one of the main reasons why I took out foreign patents was to have
the benefit of as much criticisms as possible, so as to know better the
value of my claims to priority. This matter has been thoroughly sifted
here and abroad. Not long ago, the German patent office gave me some
sweeping decisions against eight parties who had used very lengthy,
complicated arguments against my priority claims.
I beg to mention, furthermore, that I have a considerable
number of supplementary patents pending, whioli will be published by and
I also call your attention to the faot that according to the
terms which I proposed, you have a right to cancel the contraot every
year, and that, furthermore, the sum stipulated as a minimum royalty
is a progressive one, which will enable jrou to thoroughly investigate
the subject without assuming too much risk. We, on the other hand,
are wiHing to bind ourselves to you as long as you fulfill the terms
of the contract.
Ifi your arguments, you make an estimate as if all phonograph
reoords were going to be made with Bakelite. We would, of course, be
very glad if thie were the case, but I was more conservative, and the
minimum royalties proposed have been based on the assumption that only
your better reoords would be made with Bakelite, and that for those
records, you could ask a slightly increased price, and that on this
account, only a portion of your output would be made that way.
MEMORANDUM
Ur. polboer: l/9/ll.
Hof erring to your memorandum of tho 23rd ult. ,
relating to your rooont trip through tho IVost, you make a num¬
ber of ro commendations' ao to what you think should bo dono.
I wish you would bring up tho lie various recommendations as sep¬
arate propositions to bo considerod by the Executive Committee
for general discussion.
sn>/m
y. l. d.
NATIONAL PHONOGRAPH COMPANY
January 10$, 1911,
Wm. Pelzer; MoChesney; Water; Stevens;
I would like you to consider the following questions
as they shcaild he disoussed even if not acted upon at the present
• moment;
1 - The withdrawal of oertain types of our maohines whioh are
equipped with the straight horn. This due to the fact that the
Cygnet horn apparently has the call, and the withdrawal of the straight
horn types would he advantageous to the entire trade, as they would
have to carry a less number of types in order to show the entire line,
2 - The advisability of mailing only four minute type machines in the
higher prioed goods such as at least the Home, thereby obviating to
a great extent the machine not working satisfactorily in the hands
of the inexperienced consumer, to say nothing of the ignorant dealer
who is trying to show them. I realize this would destroy the
possible recording feature with oertain types of our machines, and it
may be considered best not to make this change at this time,
3 - Have already suggested that we issue a out-out list of two
minute records, consisting of not less than 200 numbers. There are
a number of the trade demanding this, and as there is a new catalogue
about ready .to go to press, this matter should be definitely decided
one way or the other.
A - Mode!
/sent you sp
j importance.
Model "0" reproducer for Home and Standard Machines. Have
iu special memorandum concerning this as I deem it of the utmost
■ 5 - The urgent need for haste in connection with the plaoing upon
the market of .the new disc machine and record. This should be very
forcibly impressed upon everyone who has anything to do with the pro-/'
duction, so we’ may put new life into the business,
These subjects for your eonsidertuFion,
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/tj . 20,1911
Mr. P. E. Dolbeer,
Dear Sir:-
In conversation with Mr. W. 0. Crew, of the
Elmira Arms Co., he stated he haB reliable information
that the Victor Company intend to entirely discontinue
the manufacture of single faced Records outside of their
Red Seal Series, and that they intend to relieve the
trade of all single faced Records now out.
Mr. Or ew claims that the demand for single
faced Records is steadily, deerea^ing and that they soon
will be obsolete. If this olaim be true, and the tendency
of the demand is towards double faced RecordB only, I
think our new product should be arranged to meet that
demand, and that we should avoid criticism from the trade
in offering a single faced Record which our competitors
have learned from experience is no longer in vogue and
are arranging to discontinue.
This for your information and consideration,
/
NATIONAL PHONOGRAPH COMPANY
Feb. 2<!> iD'i'Si
2)r. 1. H. Baekeland,
100. William St.,
How York City.
Boer Dr. Baekeland:
I mm returned to my office froa a trip
to Cuba end find yours of the 3rd Inst. calling attention'
to the fact that your letter of. January 9th had not boon
answered. I did not answer the letter promptly because- it
scorned to mo that wo were drifting apart rather than coming
together and had hoped to call in to see' you in order to'
chat over the matter hut was unable to do so.
As I have written you-,- we would like to have the
opportunity of experimenting with Bakelite and are willing
to pay for the option, giving us the right at the end of the
option period either to drop the matter, if our experiments '
with it are unsuccessful, or to. continue , if the experiments,
are a success; .but we would not wish to undertake ' tho exper¬
imental work unless there was some satisfactory assurance
that a reasonable arrangement could bo made if wo decided,
to adopt it. ~ ■ ' i
Yopr suggestion of a. royalty of 3j$ perr record
~/r24/ll.NflT|0NAL PHONC
Dr. 1. H. Baekeland.
waa, ao I wrote you, too lurgo to Do considered, and you
havo not Made any counter proportion. As X wroJ.o you in
mine of January 3rd, if the royalties wore throe mills per
record it would amount to $36,000 a year on an annual Tnisi-
nosc of 13,000*000 records, and we would Do willing to agree
that these royalties, if wc adopted Bakolito, would at least
ocual $7,500 for the first year, $10*000 for the second yoar
and $15*000 for the third and succeoding years. It seems
to me that this is a very fair offer, ho cause we would not he
ashing for an exclusive contract, and if we made a succoss
with Bakolitc and our competitors had to use it thon you
would oo in position to negotiate with them and exact larger
royalties. Surely the company that does the pioneer work
oug.Tb to oo cnconragod, hut we certainly, could not go ahead
and develop the material wit;: the thought that if wo suocoed-
od|pd decided to use it wo might he facing a tux that would
ho very largo. I do moot sincerely hope %>on reflection
that, you will he able to moot me in these views.
'• Bcliovc mo.
Yours very truly,
E’lD/HW
President.
February 27th, 1911
Campaign carried. out~Tn October, Hovember and December until I
could Get the sales for January . 7/hen I received the December
figures, I started to tabulate the results, but then it occurred
to.' me that the, advertising in December might have created more of
a demand than usual and that the January sales to Dealers might
be larger in consequence. Consequently, I decided to tabulate
the sales for October, Hovember, December and January in order
to mate the comparison as fair as possible.
7/e began this special campaign in Philadelphia in the early
part of October. The first advertisement' in the series v/qs in¬
serted on Oct. 15th, but for several days prior to that three
of the salesmen visited as many of the Philadelphia Dealers as
they could reach, explaining the plan and urging their co-operation.
Simultaneously with the appearance of the first advertisements, the
salesmen distributed a placard to all Dealers and the Philadelphia
Bulletin in turn also distributed placards connecting the Bulletin
with the campaign. The Bulletin placard oalled attention to the
Edison advertisement in the issue of Oct. 15th. The advertisement
in the Bulletin occupied a space of 14" deep, and 4 columns wide.
Three of the salesmen worked two weeks in the field, two more
worked the second weak end after that the assistance of the sales¬
men 7ms withdrawn because the men 7/ere needed in the wagon terri¬
tories. The same size advertisement was run once a week for the
eight follov/ing v/eoks. Each day the advertisement appeared the
Dealers displayed a card, distributed through the assistance of
one of our salesmen, and another card distributed by the Philadel¬
phia Bulletin. During the first week of the campaign, Mr. Rinehart
of the Y/indov/ Display Department, arranged a special window display
in the stores of H. A. -Veymann & Son, C. J. Heppe £ Son, Penn Phono
graph Co., and Loui3 Buehn £ Bro. During the middle weeks of the
campaign, we put up BOO eight sheet posters in Philadelphia, the
display continuing for four weeks. All together we spent .'''2297.47.
The only way that v/e can tell what results were achieved by
the campaign is to make up the figures shovring the loss or gain
in the business of the four months as compared v/ith the same months
of 1909-10. The following table shows the figures for the six
different sections of the country, and also the figures for Boston,
Hew York, Philadelphia and Chicago. Boston, Hew York and Chicago
are the only citieB large enough to be compared with Philadelphia.
4 Mos.1910
Hew Eng. 89,626.27
Middle Atlantic 232,087.98
Southern 59,185.75
Middle 77estern638,299.23
Far V/estem 159,261.37
Cam da 94,745 .39
1 ,273 ,205.99
4 Mo a. 1909
■ 98,019.86
240,667.48
74,751.21
666,022,99
196,473.65
75.443.00
1,351,378.19
1,
loss or Sain
8,393.59 loss
8,579.50 '•
15,565.46 "
27,723.76 «
37,212.28 "
19.302.59 Gain
78,172.20 1033
Boston 37,904.87 36,349.55
Her? loik 52,773.21 63,608.13
Philadelphia 44,085.99 40,673.22
Chicago 216,937.49 209,421.58
1,635.32 Gain
10,834.92 loss
4,212.77 Gain
7,515.91 Gain
Tho foregoing table shows that the 'loss in the Middle Atlantic
States was practically 3 l/2 per cent. Hew yortc. City made a loss
while tho other three cities made a gain. Boston had the advantar e
of tho special advertising work in connection with the exhibit of
which Hr, Dolbeer had charge, and the Chicago business is uncertain
because of the fluctuating volume of tho Babson Brothers business.
If v/o assume that Philadelphia wpuid have made tho some per¬
centage of loss as was made throughout the middle Atlantic States,
then we must deduct 3 l/2 per cent from tho business from October
to January of last year, showing that had it not been for the adver¬
tising the probable business in Philadelphia would have been^39,249.66.
If we assume that this basis is reasonably correct, then we find that
we must deduoe that the advertising campaign in Philadelphia pro¬
duced an increased volume of business amounting to §5,636.33. This
increase, of oourse, is not sufficient to warrant the expenditure
of §2,297,47. It is interesting, however, as showing that sales
can be influenced by intensive work of this kind. I believe that
could we have continued the advertising for another eight weeks
we would have derived a greater return for the expenditure. I
also 'think that could we have had the assistance of at least one
salesman in Philadelphia for the entire eight or ten weeks that the
campaign was really in operation we would have. added from 25 to 40
per cent to the gain over the same period last year.
Aside from the increased business, resulting from the campaign,
the salesmen called on jsa«e4£y nearly every Dealer in Philadelphia,
for the first time since the company had been in business. As a
result of their visits, we removed from our files about 20 abso-
National Phonograph Company Records
Correspondence, Foreign (1911)
This folder contains correspondence and other documents relating to the
marketing and supply of phonographs and cylinder records in Europe, Australia,
Mexico, and elsewhere. Most of the items are letters to and from Frank L. Dyer!
president of NPCo, and Thomas Graf, managing director of NPCo, Ltd., and the
Edison Gesellschaft. Among the items for 1911 are letters pertaining to
European copyright legislation, the Berlin office and agreements with German
composers, and the possible employment of a new European executive.
Only one item has been selected: a letter, with notations by Edison,
regarding the possible employment of a new executive.
I received your letter of the 12thHnst/at th<^
same tiffe when I was prepared to give you some more infor-
mati^ft. I have been bach in London since Jan. 16th, having
reamed via Berlin and Paris; in each place I have spent
a few days. The early part of January I spent in Vienna
to find out all about the agreements of the Gramophone Co.
with publishers and composers there and see what we could
do ourselves.
Since 1 returned I have tried to ascertain the
facts about your report re a doubtful speculative transac¬
tion, but all I could hear was this:
Sometime ago S. and a London factor, Mr. Hayslep,
intended to float a small company to send taximeter cabs on
the road. They intended to start with nine taxis. Some
of tho taxi companies have given large dividends and con¬
sequently many people thought a lot of money could still
be made out of it. So about a year ago Damage floated a
new company, in which his brother-in-law, Mr. Murdoch,
is interested. He is one of the directors. But S. has with¬
drawn long ago from the Hayslep plan, and as far as lean
hear Hayslep has not been able to realize his plan.
. V/ith regard to S.'s proposition, I have obtained
the fo ID owing information:
1. Prom 1894 to 1902 he was employed by S.
Hoffnung 1- Co., Ltd., of Hew York (exporters).
He started
fa)
there as an office hoy, hut ended up as Department Manager
and Buyer.
a. In January 1903 he came to london- was em¬
ployed hy the Gramophone Co. as special traveler. At the
end of 1903 he started the British Gramophone Co. for, the
Gramophone Co.
3. At the end of 1904 he left and started the
Sterling Record Co., which soon after the reduction of our
records to l/- went into liquidation.
4. For the last two years he has heon in the
Rena and Columbia Co. The Rena Co. was started hy Mr.
Rodkinson , the gentleman who you saw at Orange submitting
his famous plan of consolidating various talking machine
interests to you. The Rena Co. manufactured a line of
German disc machines, for which Mr. Bcrgmann furnished the
motors, and the discs were to he supplied under agreement hy
the Columbia Co. The principal market was to he England,
hut the Gramophone Co. anticipated them hy several moves
and the Reno Co. had it seems exhausted their means before
they could actually come on the market. Then 3. went
with the Columbia Co. as British Manager and has since worked
up the very small business of these people to a respectable
figure. The Columbia disc has since obtained more promi¬
nence than it deserves- Mr.., S. Tells me they have shipped
out during December 100,000 records, which is a good deal
for the C. Co. in this country.
Mr. S. , as I told you, is a personal factor in the
business here, and the increased business of the C. people
is solely due to him.
(3)
I do not care to make inquiries of the Cramophone
Co. unless you wish me to do so, and I cannot, of course,
make inquiries of. the Columbia people. Perhaps you will
he kind enough to let me have your opinion and directions.
If I may ho allowed to give you advice, I would
suggest to take a man who is familiar with the history of
the business and with business methods over here, because
Americans , coming fresh from across the sea, have to pay
dear for their apprenticeship over here and until it will
cost the company a lot of money until he has found out what
others already know. This I have found to be the case not
with us only, but with a number of other American companies.
In the Gramophone Co. there is no American Head, with excep¬
tion of I.ir . Clark, who did not have any success when in
France.
Trusting to hear from you soon, I beg to be,
with kindest regards,
Sincerely yours,
Thomas Graf.
Private and confidential.
NATIONAL PHONOGRAPH COMPANY RECORDS
FOREIGN DEPARTMENT LETTERBOOKS
The Foreign Department was established in 1900 to handle foreign sales
of phonographs, sound recordings, projectors, films, and other products
manufactured by NPCo and the Edison Manufacturing Co. Its first manager
was Charles E. Stevens. He was succeeded in 1902 by his brother, Walter
Stevens. The operations of the department were later expanded to include the
products of the Bates Manufacturing Co., Edison Storage Battery Co., and
Edison Business Phonograph Co. In February 1911 the department became
part of Thomas A. Edison, Inc.
The letterbooks contain tissue copies of outgoing correspondence
generated by Walter Stevens and his assistant manager, Louis Reichert. Only
four of the books created prior to the formation of Thomas A. Edison, Inc., are
extant. They cover the periods May 1908, January 1909, March 1909, and
September 1910-March 1911. The letters in the first three books pertain
primarily to the sale of phonographs and recordings, but there are also
references to motion pictures, numbering machines, storage batteries, and
other Edison products. Most of the correspondence in the fourth book concerns
storage batteries. Among the correspondents are Thomas J. Kennedy, resident
manager of the Compania Edison Hispano Americana in Buenos Aires; Rafael
Cabanas, L. L. Lewis, and George M. Nisbett of the Mexican National
Phonograph Co. in Mexico City; William W. Wyper of the National Phonograph
Co. of Australia, Ltd., in Sydney; and William G. Bee, sales manager of the
Edison Storage Battery Co. Included are letters to customers and agents in
Africa, Asia, South America, Europe, and the Caribbean, as well as to
commission houses in New York, Newark, and elsewhere.
Less than 10 percent of the correspondence has been selected. The
selected items include letters outlining policy on pricing, billing, and routing.
Also selected are samples of letters sent in response to inquiries from potential
customers. The items not selected consist primarily of letters acknowledging
orders and shipments; and letters of transmittal or referral sent in response to
inquiries by potential customers or agents.
The letterbooks can be found in the Edison National Historic Site
archives in the Records of Thomas A. Edison, Inc. A finding aid is available.
Correspondence to and from the Foreign Department can also be found in the
Document File.
Foreign Department Letterbook #1
This letterbook covers the period May 19-29, 1908. It contains copies of correspondence
generated by Walter Stevens, manager of the Foreign Department. Among the correspondents
are Thomas J. Kennedy, resident manager of the Compania Edison Hispano Americana in
Buenos Aires; Rafael Cabanas and L. L. Lewis of the Mexican National Phonograph Co. in Mexico
City; and William W. Wyper of the National Phonograph Co. of Australia, Ltd., in Sydney. Also
included are letters to customers and agents in Africa, Asia, South America, Europe, and the
Caribbean, as well as to commission houses in New York, Newark, and elsewhere. Many of the
letters are in response to inquiries about the cost and supply of phonographs, sound recordings,
films, projectors, numbering machines, and other Edison products. There are also letters regarding
the importation of stearin and other ingredients for phonograph records, the price and discount
structures available to Edison companies and agents, economic conditions, and the idiosyncracies
of individual markets. Also included are numerous routine letters acknowledging orders and
shipments. Some of the letters are in Spanish and French.
Foreign Department Letterbook #2
This letterbook covers the period January 5-14,1 909. It contains copies of correspondence
generated by and for Walter Stevens, manager of the Foreign Department. Among the
correspondents are Thomas J. Kennedy, resident manager of the Compania Edison Hispano
Americana in Buenos Aires; L. L. Lewis of the Mexican National Phonograph Co. in Mexico City;
and William W. Wyper of the National Phonograph Co. of Australia, Ltd., in Sydney. Also included
are letters to customers and agents in Africa, Asia, South America, Europe, and the Caribbean,
as well as to commission houses in New York, Newark, and elsewhere. Many of the letters are in
response to inquiries about the cost and supply of phonographs, sound recordings, films,
projectors, numbering machines, and other Edison products. There is also correspondence
regarding the importation of mineral wax and diamonds for phonograph records and phonographs;
the price and discount structures available to Edison companies and agents; and business
conditions in Mexico and Argentina. One of the letters to Kennedy contains comments on all of
the business structures attempted by NPCo in its pursuit of foreign markets. Also included are
numerous routine letters acknowledging orders and shipments. Some of the letters are in Spanish
and French.
Foreign Department Letterbook #3
This letterbook covers the period March 16-23, 1909. It contains copies of correspondence
generated by and for Walter Stevens, manager of the Foreign Department. Among the
correspondents are George M. Nisbett and L. L. Lewis of the Mexican National Phonograph Co.
in Mexico City; and William W. Wyper of the National Phonograph Co. of Australia, Ltd., in
Sydney. Also included are letters to customers and agents in Africa, Asia, South America, Europe,
and the Caribbean, as well as to commission houses in New York, Newark, and elsewhere. Many
of the letters are in response to inquiries about the cost and supply of phonographs, sound
recordings, films, projectors, numbering machines and other Edison products. There are also
letters regarding indigenous-language recordings, national and international tastes in music, and
the need for fire precautions in motion picture exhibition houses in Mexico. One letter requests a
sample of Australian bitumen for Edison. Also included are numerous routine letters
acknowledging orders and shipments. Some of the letters are in Spanish, German, and French.
Foreign Department Letterbook #4
This letterbook covers the period September 1910-March 1911. It contains copies of
correspondence generated by Walter Stevens, manager of the Foreign Department, and by Louis
Reichert, his assistant manager. Among the correspondents are Thomas J. Kennedy, resident
manager of the Compania Edison Hispano Americana in Buenos Aires, and William G. Bee,
manager of sales for the Edison Storage Battery Co. Also included are letters to Agar, Cross &
Co. in Argentina; W. R. Grace & Co. in Peru; and other potential agents and customers in Africa,
Asia, South America, Europe, and the Caribbean. Except for one letter relating to kinetoscope
motors, all of the correspondence pertains to the sale of Edison storage batteries. Included are
letters introducing the product line, acknowledging or checking on orders, and responding to
inquiries. Some of the letters contain references to the Lansden Co., Anderson Carriage Co., and
S. R. Bailey & Co., which used Edison storage batteries in their electric vehicles. There are also
references to the Federal Storage Battery Car Co. and Electric Omnibus and Truck Co.,
manufacturers of trolleys and omnibuses, and to the Electric Launch Co., which manufactured
motor boats equipped with Edison storage batteries. Some of the letters are in Spanish, German,
and French.
National Phonograph Company Records
Foreign Department Letterbook #1
This letterbook covers the period May 1 9-29, 1 908. It contains copies of
correspondence generated by Walter Stevens, manager of the Foreign
Department. Among the correspondents are Thomas J. Kennedy, resident
manager of the Compania Edison Hispano Americana in Buenos Aires; Rafael
Cabanas and L. L. Lewis of the Mexican National Phonograph Co. in Mexico
City; and William W. Wyperofthe National Phonograph Co. of Australia, Ltd., in
Sydney. Also included are letters to customers and agents in Africa, Asia, South
America, Europe, and the Caribbean, as well as to commission houses in New
York, Newark, and elsewhere. Many of the letters are in response to inquiries
about the costand supply of phonographs, sound recordings, films, projectors,
numbering machines, and other Edison products. There are also letters
regarding the importation of stearin and other ingredients for phonograph
records, the price and discount structures available to Edison companies and
agents, economic conditions, and the idiosyncracies of individual markets. Also
included are numerous routine letters acknowledging orders and shipments.
Some of the letters are in Spanish and French. The book contains 499 numbered
pages and an index. Less than 10 percent of the book has been selected.
Hr. L. L. lewis, Manager,
Mexican iTatloml Phonograph Co
'Mexico, B. P. , Hex,
Bear Sir:-
With further reference to your favor of May 12th,, I
note that some of your people are objecting very strenonsly to
ycnr request that oadh payment be made for goods ordered*
Confirming conversation had with you covering this
-'sstter, it is barely possible that you may find it necessary to.
mcdtl^r, somewhat, this rule. Take for instance people in Mexico
■Gity, you will undoubtedly find people there' who have a large
working capital and who are perfectly reliable. In this event I
can see no objection to your granting them 30 days time, or : *
making this a little bit more flexible and grant them; a few days
■extension if necessary. The idea is simply this; we want our
accounts to be absolutely good, if there is the slightest doubt
About the stability of the concern, then I would insist on cash
with the order,,
It is noticed of course, that in every case where cash
»«* accompanies the order, the part y ia entitle d to the 3* cash
^aacount, and, I think it will be advisable for y„u oai th.
A
attention of your people to the fact that it will bt1 to their
advantage to avail themselves of this cash discount# Mow some hill
go beyond the 10 days period and while we adhere strictly to the
10 dayB period, yet we find it necessary, at times to stretch a
: point and if payment is received a few days after this period, we
simply call the attention of these people to the fact *hat the cash
discount period has erpiredand we find, that a rule, this works
out well. You will find it impossible to adhere to a strict
rule in connection with this matter and it is simply a met ter of
scxercising ycuar own good judgment in matters of this hind
When issuing instruction^ to your hook-keeper that
dash discounts only apply on accounts paid in 10 clays . he should
s he instructed to apply to you for instructions regarding: the
matter of whether to allow discounts when the 10 days have been,
exceeded. In matter of this kind it should he called to your
attention and you should use your own judgment.
The case might arise where a very small account nas dm#
and in a few days a large account would he due and the s^fcrty
sending the remittance might not care to send a, reniffeince for the
small hill hut wouT£ include same with the ncxt remittance. In
this event ca8h discount period might have been exceeded on
"the sm?3.-i aCcouot and undj&r the circumBtanc'a»t provided the
*f\tvilege is not £,u8ed the cash discount might, he allowed
It is a fact that many of on* best houses in- this
counts do this and it is Mr, Boot’s custom when this is done
iM inraxiatocly bring the matter to my attention and I advlee
him what course' to pursue*
Yours very truly*
Manager Foreign Department,
78
May 20th, 1308„
Ur. Teijiro Kurosawa,
Boom 504,
Hotel Umpire,
63rd St. , City.
Hear Sir
Inferring to the conversation we had with you, relative
to the matter of granting you increased discounts on Bates
Numbering Machines, for sale in Japan.
I Have considered this matter very carefhlly , and in view
of the fact that you agree to give us an order for SO Bates
numbering Machines, we will grant you on that and all succeeding
orders, a 45j£ discount from the list x>ricee, plus an additional
for cash. This is an increase of 5# above the discounts we have
heretofore allowed you, and we might here state for your information,
that you are the only client of ours to whom these quotations have
been made, notwithstanding the fact that we have business houses
Who are placing very large ordors with us. We grant you this
concession in view of the fact that you are advertising extensively
these machines in your territory and ere using svefy endeavor to
increase the sale of same.
the success of your
Me wish to- congratulate you on
business, and assure you that we appreciate the favors you have
bestowed upon-™ .m the past. We have no douht that your husinest
will continue to increase in a satisfactory manner.
Va -may also state that these discounts will apply on all
orders you may send to us, provided each order comprises- at least
60 Bates numbering Machines.
Trusting this arrangement will prove satisfactory to you
and hoping to have the pleasure of again meeting you before you
leave the city, we beg to remain,
Yours very truly,
Manager, Foreign Department.
May 21, 190®.
83
Hr. Alex T. Moore, Mgr. Kinetograph Dept.,
Edison Manufacturing Co.,
Orange, N. j,
n»ar Sirs -
I tor. your ci.«>ta, l,tt„ of a, lla,
^ ~~ *■
f ; IT T“' w *—> « * - n0t.
---
rzt=.r":~:r—r
~ ZZ ZT *' reh7 oai yo" - «- *•*
0h as you allow W to dealera, it
*»■ «. t. do m. onl ’ ”111 ‘e
as our profit. This is * **** US Wlth a discount
- «. :: z r\prom> - 1
-™ ~W Urt,' ” ” b*al“ " *
««« wz zzzri yT ™y oi*“ *° *3io*,”s “■ «*.
Hay 21, 1908k
\ 1
Hr. W. S. Gilmore, President & Oeni. Hgr. ,
Hdison Buain»BB Phonograph <Jp, ,
Orange, H,
Dear Sirs*
This letter ia written simply to you about
going into the matter of granting us 50# discount on Baoinee*
Phonographs, instead of 40j£ which we are now enjoying ^ '*lich
you allow to dealer* in this country.
Yours very truly*
Manager Poreian Depafctnrento
W. S./F.EoMo
We beg to acknowledge receipt of your esteemed favor of
the loth ult., wherein you enclose an order for a phonography records
and repair parts and accessories.
The order will he immediately entered and shipped sight draft
against hill of lading. With the shipment we will include a full
supply of catalogues and posters, for advertising.
We duly note your enquiry with regard to the products of the
Edison and Bates Manufacturing- Companies.
The Edison Mfg. ce. is now marketing kinetoscopes,, films, Bat¬
tery Pan Motor outfits, cfells, and renewals. The Bates Go. d*als
exclusively in numbering Machines.
We now list four different fcihetoscopes, ranging in price from
to $17 5.00 .These are all fitted to be operated with light
*y slsstric current, either direct or alternate, b^twhen
electricity is not available for light, we recommend tb/a use of
our Qxyllth gae outfit , of which you will find an interesting
description ir. the catalog.
Oar film is now listed at $.Q8— l/fe per foot for export and
oar list of films 1b already large and constantly being added to.
The other products of the Edison Mfg. Co., such as Primary
Batteries are all of such, quality as would be expected to belong to
all electrical apparatus devised arid perfected by the greatest elec^-
trician of the age.
On all the products of the above companies, you, a3 a dealer,
will be entitled to the discounts shown on the enclosed list.
On Bates numbering machines, we beg to quote you further dis¬
counts, as follows:
On orders amounting to:
§75.00 -
§185.00— - -
§375 .00 - -
§750.00-—— -
Regular dealer* s
— - 33-1/V &
- - 33-1/5 & lQ5f
- 33-1/3 & 1(M ana 2-1/3^
- - 33-1/3 & yte a ig£
discount 33-l/p
We judge from your order that you have not been supplied
with a set of our order blanks, arid under separate cover „ we are
sending you a book of order blanks and record order sheets.
Thanking you for your kind order, and awaiting your further
favors, we beg to remain „
Yours very truly,,
Manager, Eoreign pepartment,
n
Hay 21st , 1908,
Messrs T Harayan ft Bros.
Madras,, India.
which have had
" h*v” 15ts „t„ tta 0;nteots or
r careful attention.
implying ,1th your request,, ». t.t. ^
1"“ * O0"tl*‘o *•* of our eut.ieguee, v®ioh yi.
■there you „lx rlnJ d.soriptire of th8 ^.rolel'
ffiretem conducted wth^the Business phonograph".
* tote the. y.ri.nelaering up tll. eal, ths putnt
•eother houee and we ere glad indeed to her. the opportunity ,f
' ”” br°“Sht *»*« oo»p«-i..„ with it. ». 1S05 ^
* °r th* »o»*«"0h Ju.lnes. phonograph and .,„o. -that tl.e
«r. iidinon h«. devoted .cider.**. ti*. to looting it,. „a
..Believe th.t », no. in . p.ol«h» to .rfer „„ tpth . turn
::r:r **~r- ** . „
ue .11 rind it an essential part of their office equip.**
one ehioh they cannot .fiord, to dispone. Mth. . llta.
- *• >• *«. «« «. a-t’J.V^T
«.rey to n°“t' tZZ'J’T 01 °“r *"d hl*
•IT — .. *,,* ,ua . ~ ■ " “t'r W' «“
^ * - «*. * hou" °f - ** —
** ' * ' t “* *“"• th“ - «» ««* .... -or. ooapra-
: ym th“ o” — *■ «■« ^ ^
ooTO„ywrr ”ry '“■8r,,iir ■■* r°rth- T°u '’iu **>« -
iHT “ “ * “** “d — *.«**
1 ll ”** ’ °f ■ “ .. « ««««,
.11 ‘ ror — ~ «—~.
!“ ^ *»»«-. - —.or mhl,
.■*?• “• ^ ov*ro°“ * «-»*• to «,. «
rind °r detallS aS t0 the Vari0U8 PartS 0f th4 0Utfit* you
find carefully delineated on the follow! '....,
^ page u, you wm 8ee the ffl i °: °r ree °f *• i>
..... .. . _ jrrrrr^:.
n:: :::t °f - — - * —
«ntl. onto, Mth ” 0.0.™.., d th. puroh... or »
tit. „ur ’ .optooto machii,.. ror transcribing Mid dicta- 5
oorretst ^ ^ ~ - '
7/e t . necessary adject to the outfit?
- ~r::" r::rrr*iw“ ~ -
better sell an "^SO^ business outfit than Z\ZrT
ve . x “ °rder ^ tW° 6a0h' “•***« arid transcribing outfits
anoth r c # ^ * *11°W * diBC0Unt °f ^ * **fc. that
another- cow ia offering you . larger *
connection, we can «> this
* y eay, that whatever the discount offered you.
it will pay you to have the best outfit. That insane that you must
have the "EDI SON " . You know the old addage about the ’'’nimble six¬
pence". Inasmuch as our outfits are superior to any others, you
will sell more of thejnj your sales will grow as the same becomes
better known, until* finally, the smaller discount will aggregate
you more money , than the larger . .
,, , We judge that you are not interested in our ojther manufactures,,
but,, we may say in passing that if you should, care to' consider the
salgP of our amusement phonograph,, upon receipt of your order for
thj^ee machines and 150 records, we shall be glad to accord you the
large discounts :ihownon the enclosed discount sheet.
Pr ices , The Business ptfcmagraph outfit and accessories are
sold in this country in accordance with the prices shown on the
3^at page of the catalogue,, and these will be list prices to yon*-.
■.The prices of our Amusement records, for export to your country*
are now* $.25 each list for other than Grand Opera and "Concert"
.^corde, which are $.75 list.
.., Our- terms are cash with order,, or if your prefer, you may send
,HB 5 of the amount of your order and for the balance we will
draw sight draft against bill of lading. We deliver all goods, free
• rpn board vessel, this port, arid we make no charge for packing.
Thanking you for your kind enquiry and hoping to be favored
with, an initial order,, we beg to remain, gentlemen.
Yours very truly,,
Gr. Manager, foreign Department.
May 22 t l$06c
m ,n-
lU edT J
\
Mr. X, X0 Xewia, Manager #
Mexican Matioml Fhono graph Co. ,
Mexico. D. F. , Moxo
l%ar Sirs-
I enclose herewith a communication from Mr. Xus.
Khhn, of Ind£ , Xgc. , Mexico.
3naer date of April 29ths we referred Mr. f£uhn*e original
communication to yon, and hy referring to this present letter,
you will note that he complains that his inquiry was referred to a
dealer in an out of the way place, and no reply was given his
inquiry, and also that the letter of acknowledgement wan writ tea
ifc Spanish.
* ,a° not toow what your custom is so far as inquiries
*ra concerned, hut it appears to me to he very unwise to refer
inquiries- to dealers unless the inquiry comes from same city in
*hich the dealer is located , In handling our inquiries, we
never refer an application to a dealer doing h^Inesa in another
It is entirely different with a joh-ar, as a johher, as a
rale is alive- to the possibility of obtain^ Good business and win
follow up inquiries carefully, hut it i, pot alwaye ,0 with dealers.
109
2»
particularly in foreign sountrieao
This particular dealer that this party refers to, liv*s,
as h© says, 100 miles from the Railroad and it is very evident tb&t
that, particular dealer in not in a position to look after this man*3
'o’isinBBSo. .
Then again, in view of the fact that this particular
applicant is an Jtaeriears, it would seem to mi that this particular
inquiry could he handled much hotter from your officer
How, with further reference to ■inquiries you receive,
I really heieve it would work out to your advantage to answer
inquiries of this kina, and for you to solicit the business, direct,
unless, as previously stated,, you have a good live dealer in -tfcd
city from which the inquiry is received*
Will you kindly. Immediately reply to this letter as you will
not* that Kr. Kahn expects to return to Kansas City in June*
Yours very truly,
Manager Joraign Department*
WftSftA.R-ik
221
/(
L, yj
Mr. Thomas Graf, Managing director,
national Phonograph Co. Ltd.
Willesden, London, N.W. England.
Our President, Mr. Gilmore, has handed me for at¬
tention and reply, your letter dated April the 4th„ answering hlB
letter of March the 17th, having reference to Messrs. Murdock & CTi
Ltd., of London, doing business in territory assigned to our Aus-
Our Mr • Wyper has complained at different times, that Messrs
Murdock and Co. were shipping goods Into hiB territory. In a letter
just received from Mr. Ylyper, ]e v/rites:
"Vie are pleased to note that you intend coramunic ating with Mr.
Graf, drawing -his attention to the report I made you, covering
Messrs Murdock ft Co . ' s dealing in Hew Zealand, and I sincerely
trust that such proceedings will be stopped. It, as you can quite
understand, naturally tends to upset our business relations
here" .
You car,, I am sure, appreciate that this is a serious matter,
as Mr. 71/per finds it impossible to properly enforce his agreements,
so long aB other parties are shipping gOodB into his territory. i
The "Foreign department has also been annoyed by receiving re- iJB
porta from "both South Africa -and India, that Murdock ft Cto. were
Shipping goods into that territory.
Mr. Gilmore -wishes you to confer with Messrs Murdock ft Co.
insist on their discontinuing hueinoss outside of Great Britain,
per the termB of their agreement.
Trusting that you will give this matter your kind attention,
I remain,
Yours very truly,
Manager, -rjoreign Bepartment.
7/.S./G
A copy of thie letter also sent to
Gentlemens -
Our faotory haw in preparation, and they are «rezy
endeavor, to plaee on the market, on or about September let, * new
SOt® KDTOTS HBCGBU.
Thio Record, 1 believe, will he called *AHB1RQI£» , to
distlnguloh it from Our regular standard two minute Record. This
Record will contain practically double the amount or matter engraved
<m the preeent type 0f standard Record, and there i. no doubt that
eventually it will supersede the present standard Record.
n» *.o„M i. «* mm „u„. ana M on m iw_
lar type machines , the difference being a finer thread used on the
main Shaft .
On account of the length of time this Record will run, it
* U prove a strong Goapetitor of the larger disc Records, and wwa-
ttfajly our People estpaob to have a good supply of fin# Grand
Rsoor^s; but t^S must n,o#eoari^ follow *fte* our *ore popular
•asutloes as Sands, Orshsstrs* and Tossl selections «f eii
kinds) are made.
As soma considerable time mast necessarily elapse before
tbs trade in this country oan ho taken care of, we will do no tiling
whatever about arranging to supply the foreign trade with these
Beoords at the present time.
an saw machines manufactured for use in this country af¬
ter September 1st will be * id Arranged that both the standard **&-
these new Records earn be used* -tbtbtk attachments will also be sup¬
plied » which oan be attached to the old type Maohines , thus making
tt possible for ary one having an old type machine to uss both <ha
two-minute and the four-minute Record.
I will not go further into this matter at ths preesnt
time » but we expect in the very near future to have a line «f print¬
ed matter descriptive of the new Record, and Just as soon •* *fci»
is received, X will forward same to you.
The list price of this new Record will be Bfltf , ss agaiss*'
Stff for the standard else.
Youro very truly.
V* s<
Manager foreign Department.
Mr. W. W. Wyper, Manager,
Rati. Phono. Co. of Australia, ltd.,
Sydney, 1J. S. W,
Pear Sir:-
In your recent communication you advised us that you
had received requests from your clients, from time to time, asking
that the name of each record selection be printed on the label
which is attached to the cover of the Record carton.
This matter was taken up with our Mr. Wilson and I enclose
copy of his letter which I think you will find fully explanatory.
With reference to the third paragraph of this letter, would state
that our factoi’y expect to place on the market, on or about Septem¬
ber 1st, a new record which will contain about double the matter
that is now recorded on our Standard records. This record will
run approximately four minutes and they hope to have about 100
selections ready for distribution about September 1st. These
records will only be sold or distributed in this country, as it
will be impossible to provide for the requirements of our foreign'
trade , Undoubtedly gome time will elapse before we will be in
a position to supply these for foreign trade,
Just as soon as I
C“ °btairj SfWipl6B 1 w111 Upward Bane to you and I wEU at that
time write you very fully in regard to these new records'.
We expect these new records will prove a *yeat stimulant
to the sale of talking machine records and we expect that all
machines for distribution in this country on and after September
1st, will be equipped so that both the old style and the four minute
record can be used on the machine. An extra adjustment will
also be supplied which can be adapted to the old style machine.
Just as soon as we are in a position to supply .these
new records and machines for foreign distribution, I will advise
yow giving you full information, and, just as soon as the new
literature is issued covering same, I will forward copies to yo^
Yours very truly,
Manager jo reign Department.
W.s./Y.R.M.
/'
Mr. T . J .Kennedy i Resident Manager,
c£a. Bdison HI apano -Americana ,
Buenos AireB, R.A.
Dear Sir:- _ <-
I beg to acknowledge receipt of your favor of April 3 th,
in which you acknowledge ours of February 24th and 25th and March
2nd, calling attention to the fact that we misunderstood y«ur letter
having reference to the change in prioe of the mechanism -of the •Uni¬
versal Kinetosoope. '
In yours of January 30th, you mention the "increase bn
price of the mechanism, and the decrease in price of blank films".
I am sure, however, that the matter referred to is perfectly under¬
stood, and no further comments are necessary.
TmrmtsTAH 3HIRM8RT:
I regret to learn that the Cabinets and "Truatone" Horns
were received in a damaged condition, and I will endeavor to have
the parts of the Cabinets supplied, and also have the two Horns
furnished by the Manufacturer "no Oharas’*, and IS auo«aaaful, will
include same in your next shipment .
T..T.K.,
I am glad to know that the cabinet a were acceptable, to
you, and trust you will be in a position "to do some business with
them.
CRI 011.0 RECORDS :
I note that you received, some days prior to .the flat e af
your letter , the documents covering the ..part shipment of the Grato-
llo Records and 1+Q.8* Outfits. I note you were surprised at .only
receiving 1500 Crlollo Records on that particular steamer, and in
this connection would state that when this initial shipment of Re¬
cords was made , in notifying you of aama , -owe shipping clerk ohna’ilai
have given you full particulars, hut this he advisee ms , he '-smiter—
stood was to he mads the subject <of another letter. Stas truth <bHT
it is that it waB impossible for us to get the full number of Crlo-
llo ReoordB off on this steamer, and as I knew you were very orach in
need of same , my instructions were to make .part shipment; but .when
you received notice . of this shipment you should also '.have received
notice that it was a part shipment, and the balance of Ithe order
would follow. By SS " CA3I1DA" , sailing March 25th, we marie a fur¬
ther shipment of 3500 Records, completing the first order for 100
each of the 50 selections shown on our first list.
The second shipment -(B ,000) , were forwarded per SS "VBXJU3-
QUEZ", May 20th, and the supplements for tills list; were shipped per
S3 "VERDB" April 16th.
The third list we expect to ship in August, arti. the 4th in
November.
If you desire the entire list completed irawsSta tely , kind-
ly adviue ua fully, X might state, however , that X question vary
much whether we could complete the entire list .at an early date, -on
account of the enormous amount of work the factory have an hand at
the present time. Ho .doubt it seems to you, as it does to me, that
a long time elapsed before these Records were ready for shipment , ifcttt
1 should state that the foroe of men at the fa.cfcoty manufacture cttfee
moulds is simply overwhelmed with work; their regular monthly alwmfc-
con list of 24 Records eaoh, must be gotten out; tUaen wre have cnur
Mexican, Cuban, Argentine and foreign lists to 'get out,, tbs msg/
ing about the extra effort our people aie making to get out « new •
Record for use in this country (and also, eventually, for use in 'the
foreign field ) about which 1 shall write you under separate -cover.
While their facilities for making the a a moulds are ample for meeting
their requirements, yet, at a time liks the present, when so many ex¬
tra things are coming out , they are simply swamped with wm&,
Haturally , one might think that under the circumstances
our people should increase their facilities, but when ms .consider
that the parties doing this work must be experts in their line, «*
these people cannot be picked up everywhere, it siupiy matt* that
they must do the best they can, even if the trade in a measure,
buffers ,
^AOINI AND REDUCTION IH PjRICB 0? RECORDS:
I am very glad to know that your action in Meeting Mr..
Tagini * s advertisement Bliaon Bernards ** the desired effect.
X regret that you were somewhat disappointed that your
action in meeting this act did not meet with .our approval. I am
sorry 1 gave you this impression* when .1 referred to the established
rules of the Company , hut right her® I wish to -State that we appre¬
ciate fully your position* and we have the utmost confidence in your
ability tp meet Just such an issue as that presented by Tasini1*?
action in cutting the price of our Records. You ere on the ground,
and understand conditions thoroughly, which, of icrurse, we cannot
here in New YoriJc; and there is no doubt that you acted very wisely
in this entire matter..
1 am very glad that you have gone into, the matter -so thor¬
oughly in your letter. I appreciate that conditions are very dif¬
ferent in Buenos Aires than in the States; we can control the price
of our Records here, and immediately proceed against ary one cutting
the price, and we hope sometime that you will be in the same posi¬
tion; but for the present you have simply got to meet conditions as
they are , and you can rest assured that we at tttla wad will do svsxy-
thing in our power to assist you.
ENGLISH RECORDS i
We acknowledge receipt of your order for these Records,
and we trust that they will enjoy a large Bale in your territory.
The Records referred to were Bhipped per SS *V^LASQUBZ" , sailing
May 20th.
POWER OF ATTORTTKY;
I regret exceedingly 'there was -a delay on the part
of our legal Department in sending iPawer of Attorney and License
as we supposed that this had bean fw»lara«d promptly to you by them,
249
T »<T ,K. , -{5-
they having promised to give the matter their attention.
The documents referred to were mailed kto you April 29th,
and 1 trust will reach you in time for your requirements.
We aleo acknowledge receipt of Hot of sales for the month
of March. Statement and vouchers covering sans have been re¬
ceived.
Yours very «®»ily,
Manager foreign Department .
May 23rd, 1908.
I
Mr. T.jT .Kennedy, Resident Manager,
Cfa. Edison Hi spano -Americana,
Buenos Aires, R.A,
Dear Sir:-
I hay a your favor of March 26th, in which you acknowledge
receipt of oir favors of February 14th and 15th.
CRIOKLO RECORDS;
I note that the advance lists which were forwarded by
were received, and that they meet with your approval.
Following your suggestion, we immediately took up the nat¬
ter of having these supplements Read "CRIOiaos" , instead of "ARGKJT-
• and on the third and fourth supplements whioh we are prepar¬
ing, this change will be made.
1 npte you have changed the price of the Gem with new
equipment, in order to meet the competition of other makes. I al¬
so note that you are considering slightly reduoing the price of the
new horns for the other machines, thie reduction only to apply when
a complete Outfit is sold,
lAHQUAGE OUTFITS I
We can only confirm what we previously stated in connect-
9
T..T.K., -2-
ion with these Outfits, viz: that after your present stock is «x-
hausted, we think it would he undesirable for 'you to -cxpend'ory 'of
your energy In advancing the sale of these goods . ®! , ^however, ,;*jobu
think it wiBe to keep a very small stock ;«f vt&s se «n ;hanB , iwe -wfiSEi
he in a position to supply same; hut -on >aa count ,of 43»e vuesaiisfeMrt -
ory treatment we have received from *fiaase people , W3“ha»s practically
given up the eale of the language Outfit s , hath in this of f ice and
our foreign branches..
ROSARIO AMD CORDOBA:
I am very glad that you oould arrange to 'take :thls ^little
trip, and I feel sure that if you can arrange your bttaAness rso -that
it will he well taken care of during your -absence ,h; -might > he ' wall
to take an occasional trip to some of the -more -important cities viwr
you, as the success of your business must. An aimeasurs-, ^depend -upon
the rnanher of dealers and jobbers you are able to establish.
From the report you recently forwarded to us , it dham
that you are. making steady progress, and we feel that -ii .'As swaly a
question of time when your office will nfft only he self-supporting ,
but eventually show a substantial profit. We all appreciate that
you cannot expect to do an enormous business at the start, as it 'was
necessary for you to practically re-introduce our goods into your
territory. I understand the situation thoroughly; we have always
refused to give the exclusive sale «f our apparatus to any one fjbb-
ber, and, not having direct reprexeiitatlen, nature, lly the demand for
our goods was very small. We feel, however, that it will only be a
question of time now, when we will be properly “represented, and
252
T.J.K.,
+ . ,t lB therefore perfectly ndtur-
demand for Edison goods created. re^affnt«d, «t
„ „ +>.„ fact that we were not prnperiy r®*u
al* in V W . we had in *x measure withdrawn from
people generally supposed that we had
the field. .. t4n,ovtB which are com-
Mi>c r°« »•« ‘ , _
„ .. u„ and .UhlM 3"~ <* »“00" “
lug to ua from time to tune ,
your field, I remain,
Yours very truly.
w. s.
c.
/
//
Manager foreign Department,
Mr. T,J,Kennedy, Resident Manager,
Cfa. Edison Hispano-Americana,
BuenoB Aires, R.A,
Bear Siri-
I have your favor of April 23rd, confirming yew cubic
vices that the Power of Attorney had not been received.
Aa advised under separate cover, the necessary dooumetfts
were forwarded to you by registered mail April 89 th.
I can readily understand that you have been seriously
handicapped on account of the delay in sending these documents, taut
trust that upon receipt of same, you will be in a position to prs-
oeed immediately against any concern whatever using Mr. Edison's
name without his authority.
1 have no doubt that Mr. Taglni V/ill do everything , in his
power te handicap you in your work, but 1 feel sure that you are
capable of meeting him, and, in the end, that you will succeed in
your endeavors to bring him into llne^.
HOMER SHIPMENT ;
I note this shipment was received as a whole in good con¬
dition, with the exception of seven Records and six blanks broken.
B pa.ee claim on ^ factorj, fbr ^ ,rpken
ocords . i also note that the Kipatoscop.e part forwarded to you
*-ail -3 reoeived broken, and we also .duplicate this .part.
I have taken due note of your -remarks with reference to
in which the tPiOn business *fc* -conducted, namely, that
of the exhibitors prefer to rent their films rather- than pur -
hom outright. This i8 perfectly natural , .but iXt - would .-he
u possible for ^ ^ ^ 0^pemion^w_^d _
under any circumstances, arrant
ange to carry liar ge e^odk^ jaaama,
and do a renting business. I can i
^ r«a-«.ly understand Why aua woi-kc
out to the advantage of the Paths penm*- „
.issue Xk&xa&
°f T11" ^ "*• ■- - — — — ,JrTZ
*h°ir ^ — • - —
*> «— * sflISect
“*• »»«»«. *» ««««., ,«„ « _ «.
10 **“ »“»“ <* ««««,„„. .
* “b" u,r-“ *■* •» **•** *•«.. «».. ». dl.:
*“ «■ *«H» „»
1>w a,:' *“ «“ « »»t W « *«.
az a greatly reduced price.
more the ^ ^ ^ ^ ^**»~f* *** that we have
abl t " d°UWed °Ut^* -» »•«*• ^ twelves scarcely
with th T thB demand °07erlne «*« *>*<* •» Placed
or every new subject iBBued, They have no desire w
T.« j *K. , -3-
time to make up a lot c f subject s, many- of which would undoubtedly
prove poor sellers, and hence they are not in a position to meet
this competition.
Once in a great while you will find that some of the sub¬
jects we send you cannot be disposed of. As we do not care to thavs
these subjects returned to us, it will be necessary for you to die-”
pose of same, even if you are obliged to slightly reduce the price.
I trust, however, that you will experience no difficulty in di*)p©s-
ing of any of the subjects we may forward to you*
So far as making one of the conditions of the lieefflase aur-
der which business is done in this country, that JLn rcntitn® tEBastr
71 lms in other countries they would not discriminate the
use of the Bdison Kinetosoope, would state that the license referred
to has nothing whatever to do with the sale of films in ferfelgn
countries, nor can we expect to control that branch of the business.
I might state for your information, that conditions in
Mexico were practically the same as you f^nd them in Buenos Aires,
but I am very glad to say that since the price «T oar Slims 3ms 390en
reduced , many of the largest exhibitors in Mexico are using «ur
Films quite freely, which, naturally, has resulted in largely in¬
creased sales.
CBIOELOS:
X note that the first sampleB of these Records , covering
the first fifteen numbers, were received, and it ie a souroe of
great satisfaction to know that the FigoU selections are pleasing
to your people. When these Records were records ,[ our people in
25?
T.J.K.,
the Recording plant were very U ar/ul that they would not prove ac¬
ceptable. Naturally , they fouxld that, compared with the Recorde
they were making, these particular Records were very much below the
standard, but as I explained to' Mr. Miller, at the time, that, while
these Recorde appeared , defective and very poor from a . musical stand¬
point , yet I was sure that thifc particular c3*ss of Records Would
easily pass muster in your country.
Some of the Mexican Records that were taken were Very or¬
dinary, - in fact, it seemed we were baiMtgr Justified in putting
them, out., but notwithstanding this fact„ tfltas*B same ReoordB .have
enjoyed a very large eale.
I truet that the entire li*t of 3tecnrtts *i01 : jwcwe tesail-
ly acceptable, and I alsc trhet that at no distant
able to issue a very complete list of Argentine Records , ;se*tt**g ««r
experts down to you to have this done. Just when this can !fce -dene ,
I am unable to state, but I on not losing sight of the matter, and
Juet as soon as we can arrange for it, .undoubtedly the work will >be
started.
With regard to y.dur. cable orders for these Records, follow¬
ing your suggestion, we cabled you the word "C0RB", from which «
understand that in any cable <|rder forwarded to us for these Records,
you will use the special 3-lctter code which we have in use with
Australia .
VAR METER;
I have noted your remarks with reference to this party
still remaining in Buenoa Aires , and also that he claims to have pr-
258
T.J.K., -5-
xanged with Tagini to sell the outfit referred to in your previous
letter.
I am inclined to believe that hie idea .wa-a to frighten
you somewhat , no /far aa Tagini duplicating Records ic concamsd/
and I feel quite sure that a man of Tagini experience would not
attempt to duplicate our rBecord^ , and make himsgar liable to probe -
cution. As far as Tagini ie concerned, I am sure -that he would not
hesitate to do a thing of this kind , if it were not for fear of
prosecution. However, it ie a good -thing t» know what Ibe is duitg,
ana If he attempts to do anything in the -of duplicating , you
will undoubtedly *e able to get after him.
Youfs vary truly.
V, S.
C.
Manager Foreign Department,
Mayo 'ZB, i9oi
Srs. .ffamoB jr Suarez t,
Mayaguez, p. £,V
Muy Sra. Jfaeatroaj..
“ “ TZ^JX T* * Ta- * —
les h9nos Yeomen dado reoientenent T ^ ^ 5erS0na8 4 Irenes
y no. .. mto t ' M"w<te yonosr.ros ,
—• — - ~ r — —
r.oo™nailMo * ' T.n®«... mcho ^ ^
™ ” * «=• t,,,ltorlo. 'W“ “ *** “““‘•'•M
la *>«», le, » ~ua» non « erect, „
WWb—» • *a”Pt" la >»«« aatuai,
— * — - — * - —■ -
”” 81 tab0 lto®> S' 1« loo. P.w(la y “'•a S' -tree
m° * «™ PfueS. aetmlto hil, ' W"“ "• ••»•*•» o.d.
- on r. “w^T" W « -
r* - - — s: ^zrjzzr i -■
— * ..... a.
B.oonooo.o. 3l He oho ,„. e. p.,% , ’
corta con la boca pequeila daxia al fomogsafo ana apaxiencia
mejor, pero el que uaase el Ponografo con ana bocirn de es$e
genoxo ci ertamente oacrifi carla el tono pox la aparlencla.
Kemos notado lo quo vaa. manifiesten acexca ae la
seleccionefi Puextoxlquefias y si hubiese alguna posiblidad de
xepxoducixlas pox' .medio de nuesiraa bandaa, del misrao raodo qae se
xeprodueixian pox lag bandaa da esp pale, no vacilariamos en
pedirles la rauclca de algunas de eBtas seleccionea a quo ae xe-
fiereru, pexo as tamos completamente seguroaqnela xendicion de
eetao seleccionea por nueatraa bandaa- seria motimo de hacexlaa
pexdex mucho de eu cnalldad encantadora debido a qae aiuestros
musicos no estan al tante do la mareexa de qae se ejectrten tales
seleccionea pox los musicos del pais,
Paxa sa infoxmacion po alamo a raanifestarles que nuestxo
cuexpo de pexitos aboxa se h&Lla en Mexico en doiide se dedlca
a hacex una gxan lista de selecoiones Bapaflolas y esperamos qae
al expedixse estas naevan enconsxaxan algunas selecciones que lee
seam utiles y de aceptaciom pc:; su clientela .
.La pxesente sereira de acusaxeles xecibo de su peflido
de varios fonogxamas segun los titulos enumsxados, Ponogxafo y
etc. Sate pedido xecibira nueetxa inmediata etencion y se
despachara cuanto antes positle y les avlsaxsuOB de la fecba del
erabaxque®
Paxticipandoles la, a gxaciao pox bu gxato pediao, somos
de Vds. ate. y bus S. s, ,
q. B, S. Mi
Gerente Depaxtam'teto Extranjero.
National Phonograph Company Records
Foreign Department Letterbook #2
This letterbook covers the period January 5-14, 1909. It contains copies
of correspondence generated by and for Walter Stevens, manager of the
Foreign Department. Among the correspondents are Thomas J. Kennedy,
resident manager of the Compania Edison Hispano Americana in Buenos Aires;
L. L. Lewis of the Mexican National Phonograph Co. in Mexico City; and William
W. Wyper of the National Phonograph Co. of Australia, Ltd., in Sydney. Also
included are letters to customers and agents in Africa, Asia, South America,
Europe, and the Caribbean, as well as to commission houses in New York'
Newark, and elsewhere. Many of the letters are in response to inquiries about
the cost and supply of phonographs, sound recordings, films, projectors,
numbering machines, and other Edison products. There is also correspondence
regarding the importation of mineral wax and diamonds for phonograph records
and phonographs; the price and discount structures available to Edison
companies and agents; and business conditions in Mexico and Argentina. One
of the letters to Kennedy contains comments on all of the business structures
attempted by NPCo in its pursuit of foreign markets. Also included are numerous
routine letters acknowledging orders and shipments. Some of the letters are in
Spanish and French. The spine is stamped "Foreign Dept," "147," and "N.P. Co."
The book contains 499 numbered pages and an index. Less than 1 0 percent of
the book has been selected.
o
i. 5, 1909
eraraci: ss&m/aaix add list on sai.es.
Shoe. K. Kennedy, Resident Jfer. ,
Compariia Edison Hispano-Americar.a,
Buenos Aires, Argentine,
W® teS® t0 p'c^o"ledge receipt of your favor of the
-T ?r0X iD Which >'ou encl°*° statement and list of sales
as cf November 30th, 1908.
Be have noted your remit, resorcin. Hie poor showing
for Eoveniber, tut horn no douht you rtll „k. 0J ^ ^
le your next statement.
BKlng OU things Into consideration we cannot hut feel
-VV^“ "* ’*'** anJ - •“ *<»•. " » ar. sure you *
^ it is only a natter of tim. then you will not o.Oy he ,bl. t
^fr-all expenses, but also shov? a profit.
Awaiting y0Ur further favors we renain,
Yours very truly,
a' /
r p A 5 J - isJUH' t
“'**■* Manager Eoreign Department. ‘
Catalogues, pro-forma
5 Jan. 1909
***“• A. Jadmaraje 0ondit,
^ stT ’“”*-**»• *«•«*.
Your kind favor of the ^ ~ _
ttt HS f°r Nation, as 0ur . ' **""** has ^ ref,
skip^ to India, ^?a“oh ** not authorised to
c«np lying with von*. „„
separate co**, a 00J^' ^ *** Pl**BUr* la "»*«« y,
“* ^ *Jr «“*
* ™‘. «« „„ t0 *”
■“» *- as* kl”t”“-’*.
* —»* *. ~ 0:t:w“iur -
“ I1”t a ”“>W „r IUu w» «u not, tm
»««* ™7”; ’m*~ in *- «... ■
"• “*•”«'» *• - ttha - — «
•OOP, la th. ut 1 ‘ITS B. Thlo kln,t,.
*— . « ha, :i:v“ «* *.
*“1‘— *» «». *.«« state, 2“ ™ ““ " *** to8“*
»• «ratu wth .l„trlc lltet „ . °” *" fitted
— . . - -
°*yu-th- outfit. Of whlch
you will find an interesting description in the catalogue.
By referring to our film lists you will note that we supply
subject of every kind, suitable to please audiences of the greatest
variety of character. To these lists we are constantly adding.
Moreover, we are now in a position to quote you a low price, only
$.08 per foot.
In order that you may form an idea of the cost of an "Underwri¬
ter's Model" kinetosoope, an Oxylith outfit and 5000 feet of film,
we are enclosing a pro-forma invoice, showing the cost of the same,
to the amount of which we have added the approximate freight
charges to Madras.
Our teimB are cash with order; we deliver all goods, free on
board vessel, this port, and we make no charge for packing, if you
prefer, however, you may send us 50^ of the value of the order and
for the balance we will draw on you at sight, against bills of
lading.
With regard to discounts., we beg to state that we only allow
the same to those, who desiring to take up the sale of our goods,
favor us with an initial order for two kinetoscopes or for three
phonographs and 150 recordB. If you care to give us an order of
that size, we shall be glad to quote you discounts.
In reply to your enquiry, we beg to state that our various
circus films have been cut from the catalogue and can no longer
be supplied. You will, however, find many other Interesting sub¬
jects on our list. All recent film supplements contain a full de¬
scription of the film.
Thanking you for your kind enquiry and assuring you that any
order, with which we may be favored, will receive prompt and careful
attention, and awaiting your further favors, wa beg to remain,
55
a
Mr. w. W. Wyper,
Manager, Hational Phonograph Co. of Australia, ltd. ,
P. 0. Box 146, Sydney, H. S. VI. , Australia,
Dear Sir:-
SUBJECI: REDUCHHG M0HIH1Y SDPP1EMEHTS OP RECORDS.
Vie heg to acknowledge receipt of your favor of Hov. loth and
note that you have Been seriously considering the matter of cutting
down your list of monthly reoords. 1 think it would he very wise for
you to follow out this plan, as it, undoubtedly, works out a hardship
to your Jobbers and Dealers to carry a complete stock of monthly reoords ,
in view of the faot that we have been listing 24 American Reoords each
month and, in addition to this, you have 11 of the British list, making
a total of 35 new reoords each month. My suggestion would be to elimi¬
nate entirely some of the talent on both the American and British listB
for which there is little demand in your territory and bring the liBt
down to not more than 24 eaoh month of the two-rainute reoordB. At the
present time we are listing go two-minute and 14 "Amberol" Reoords jkst
month: However, I believe our people expect to deorease, as soon as
possible, the list of two-minute records and increase the list of
"Amberol Reoords?
How, when you begin to place the "Amberol Reoords" on the
Mr. W. W. Wyper, (Cont’d,)
Deo* 31, 1908.
market, this will atill further increase your record list. You could,
if you saw fit, cable us to eliminate certain talent from the list of
two-minute records, and, when placing your order for monthly selec¬
tions, we could follow your instructions. We leave this matter
with you and await your instructions. I fully appreciate that it
will be rather a difficult matter to eliminate entirely some of the
talent on our list, even though the sale of records made by certain
talent does not enjoy a large Bale. We send the London Offloe a
list of numbers each month and they immediately cable us to eliminate
from the list certain titles which they think they oan dispense with.
They list monthly, I believe, 12 two-minute reoordB.
I am sure you will give this matter careful consideration
and we shall be pleased to follow your instructions regarding the
matter of eliminating certain titles Just as Boon as you notify us as
to your wishes.
How, with regard to the allowance of 2# which you have been
making to Jobbers on aoaonnt of defective and broken records, it would
appear to me that you would be Justified in continuing making this
allowance on the 2$ basis, as, undoubtedly, your clients are-in a
measure-justified; whereas, if this privilege was denied them, it
might cause no little dissatisfaction and, in the end, work out to
your disadvantage.
Yesterday, at the Factory, I had a conversation with Mr.
Mr:, w. W. Wyper, (Cont'd.)
Deo. 31, 1908,
Wilson regarding the new arrangement which became effective August 1st
of this present year, and more particularly with regard to crediting
your office with defective records. He seemed to be under the im-
preBsion that, in view of the fact that these records are being sup¬
plied at factory cost, the factory should not stand any olaim for de¬
fective records; Of course, X oould not agree with him on this point
and we have agreed to Bubmit the matter, for final decision, to Mr.
Dyer. I shall take up this matter, at the earliest moment, with
Mr, Dyer and will endeavor to have him agree to permit you to charge
baok to us defective reoordB whioh you receive from your dLients . So
far as allowances of this kind are concerned, these have been in the
past, in a way, offset by the broken material i*idh you have returned,
but the Bystem, Which we now employ, makes it impossible for us to use
any of the broken composition as used in the two-minute records. X
am told by experts at the factory that, if one or two two-minute record
are put in a tank with the composition of the "Amberol" Beoords, the
entire composition used for the four-minute records would be ruined.
This may be drawing the matter to a fine point, but it is a fact that
not a partiole of the two-minute composition oan be used in the manu¬
facture of the four-minute records.
WS/JTB.
lours very truly.
Manager Foreign Department.
6 Jan. 1909
Re refund of duty
The Wells 3?a*6° tf*?*680 60.,
yorei-g*1 & Importing Department,
51 RrOadway , city.
a.ntlraen. ^ ^ ^ hani y.„ herewith yur lutolc. tag, oo«rl»s
the Iwportlug of a ehlpwent « •*— “"“S*4 ”
the Bdieon Phonograph Borke, Orange, ».».
We would respectfully call wear attention to the tact that
„ th.ee horta and epllpt, were not *- *> “ **?
.. they actually were, no duty eheuld he charged ther.on. *
therefore ae* you to kindly take the w.tt.r up with the Proper On-
tone' Official, la an «*■««* « ”•«’** *“ ^ ^
please giro thi. your tt-dl.t. attention aid addr... your re-
ply to the writer, obliging,
. Yours very truly,
/ ....
u
" Orange, U. J. '
Dear siri-
Deg to hand you Brie B/l. ooverin* 213 befea of erode mineral esr,
forwarded’ to you per Brie B. B. on the 4t»ila»t.
!Eha ahovo- forna part of a ehipnstat of SIS bagg er w imported from
HanflmrB per s/B "EBETOBU". The balance of 2 baga will be forwarded Just-
as eoon as it passes the Cugtons.
Toura -very truly.
Aes'to Manager, Kinetograph Dept.,
Edison Manufacturing Co.i
Orange a if. j. s
Dear Sir:-
SUBJECT: ETDMS.
You will recall that, some days ago-during a visit to the
laetory, I referred you to your invoice #04l6A covering 2270 feet of
film covered by our requisition #3696.
At that tine, i 0.1104 year .Mention to ths fast that you,
had dh.rgod those ah,, to the foreign p.partnent at d-l/s, per *,*
"i'<’”84 r°” r<"" “a*1 dated sapt. Sth-in nhlo yen
attach a hist of fil.s end e«„ng *1A the .adjects
la this sales tallotlu, yoa stated that the., til™, .beolntsly „
asterthele,,. yoa advise that oar order-covering so,, of the subjects
adv.rtls.d-™. „a, ap sp.cl.lly for as. haace the addltloaal charge
dlac. bringing the .att.r to year attention, 1 have received
letter fro, oar H.uioun Office In *1 oh they state that they sold the
films referred to at H per foot in Merlon Oity-on account of having
received the sales bulletin referred to, and oonplain .boat the price
charged to theip, viz:- 6~l/2jJ per foot.
2 24
Ur. John Pel zer, fCont'd.)
Jan.
1309.
This matter was talcen up with Hr. Dyer in order that the
matter may be adjusted to the satisfaction of the Hex loan Office, and
he instructed me to communicate with you-asking if this entire order
was specially made up for the Foreign Department, or whether a number of
the films were taken from the stock Which you advertised to sell at 5^
■per foot.
I should be pleased to have you look into this matter and
render the proper credit, if wo are entitled to some.
Yours very truly,
/^cltidA. • ■ ' /U'ltt/
Manager Foreign Department. /'■
WS/JEB.
234
X"
Jan. 6., '190? .
;r„ I,. X.. Lewie ,
Manager , Mexican national Phonograph Co . »
Apartado #2117, Mexico, D. F„, Mexico,
joar Sir:-
SUBJEC2 : TRADE COHDITIOHS ADD HEW PRICKO .
Vie teg to acknowledge receipt of your favor of tne ir5th
irox-ulto . fn which yon acknowledge receipt of ours of Hoy. 6th.
I have read your letter very carefully and note whet you
3 ay about the trade prefering to rail other cyllndri.e^ machines on
account of their receiving 40?, discount against ef& whicn we axiom.
V/ith reference to youv request *hat we authorize you
crease your percentage of discount to 40? on the new equipment and
Amber ol Machines hy adding §5.00 United States Currency more then the
American price for the Amherols and §2.50 more «h«. the American price
for the new equipment. In reply would state that I think, if you
will give this matter very careful consideration, you will agree with
me that, to materially increase the list prices of cur machines, would
ho detrimental, By increasing th-, list prices and the disc, lats. it
would simply mean that your 3bi bern-who are procuring our goods from
the States at United States prices -ould receive an advantage over the
Jotters who are purchasing their i from you at Mexican prices. This
would give the Jobbers, -purch a. i'. , Hew York prices-a decided advan-
2 -
*“SS: ““ t00‘ “ ”* »"*«* «>• faot th.t .S6.0C, „ 5W 0„
iaoro"' - th° — - — -
“ Z - ‘ WShil t0 J0“r - ~ •* u*
».u o^rzziiiLzitZrZ. r trM° are i”oii“81 to
« *• — ;:r ~ -
«“* «• conditions ha.. foI ' «“ •»«*•
7 — - - - :r:r:::;:r4.r
- L ‘2721 Z~TZ * ,,XIIt“ *
*. -x—
o«etoel plon r r ”,jia *• Bi>s *« •«“» t.
— z,z?zzzzz?mr* to
I»ia».«erras . ... tlum tlia.prleae obtained in
- ~ — «. », z:z-rzrr°*iiy ** *• °“-“
- **,» th. szJ,Z7Za “ttar ”*8 slV8°
«“ —see you . Wrt ... y ,r,. ' IZZ “ " “i8
•«*•. . «,ls laol.. ,,„1=s t;„ IlBt • "r“s; *° 80 -** «*
MerELoi-n Cart . - , P 03 of in
apparatus Ti'T" ^ Prl"" °f
yu_ wj.1^. recognize the necessity far
jsity for
%. I . Lev; is
Manager, Mexican national Phonograph Oo , ,
Apartado #2117, Mexico, D, F„ , Kexioo,
We heg to acknowledge receipt of your favor of the 551st
ulto. in-re prioes Combination Machines , Combination Attachments and
"Amberol Reoords."
I found it neoassary to delay replying tc your letter of
recent date regarding the prices on the above apparatus,, as I desired
to go into thin matter very carefully before malting a decision.
Under yesterday's data, I wrote you fully in regard to this
matter, giving you my reasons for adhering to the old line of discounts,
and,, for your information, enclose, here7/ith,, a catalogue with the
prices properly marked and would ask you to immediately proceed with
the printing of your agreements in order that they may he ready for dis¬
tribution on or about the time you are ready to accept orders for new
Comhination Machines,, Combination Attachments and "Amberol Records."
In having these contracts signed by your Jobbers, do not over¬
look the faot that you are to specify~in these contracts-the amount of
Mr, I. I, lawia, (Coat'd.,, }
Jan. 7, X9o9
business that the Jobbers must give you per year, and, just as' soon
as these agreements are ready, I Should be pleased to have you Send
me two (2) copies of eaoh.
Yours very truly,,
Manager Foreign Department.
V/S/JTB.
SITClOSDEEo
Jan. 7, 1909.
Hr. W. W. TJyper,
Manager ,
National Phonograph Co. of Australia, Ltd.,
p. 0. Bor 146, Sydney, S. S. W. , Australia,'
pear Six:-
BUBJECS: SEW AMBEROL EEC ORBS AHB AMACHMEETS.
W to atao.l.dg. reoeipt of *>«* letter of .... loti, and
.... ^ ..re dia appointed t. me that .o ..re m^le to supply the re.
ittooB.er.ts and »«>'! Booords at an earlier dote. .
1 oar. appreciate, in vie. of the edvenoed l»for„tlon xeoeiv-
ed by poor elimts. tint y» have toon pl.oed in an
ion. tut *1. ms a natter .. could not Poeedhly «-«• *» «»
w ond-in the e»d-I feel ttit. aura .ill .or* out to your a «■
this particular reapeot, ae yea Sac, «h« u ruff naolin. or aay
' parata. ia pat oa the narS.t-ev.n « -* ™—“ “ ‘ .
oughly teated hef.re talas pl.-d on the narSet. certain inprevaneate
immediately folio.. .her. 1. no doott that oar people
rapid strides in improving the Amherol Records since the r
..re placed 0, the aarSet. and the product no. iaaa.d ia aaperiar
the firat Hat. »y of the sahj.ats have h.en — «“■ *
reault of *iah «.ve then a much ano.thar and •
too. on aooonnt of th. eapphlr. naad on th. »« epedSar Utt, V
- 2 -
Mr. V/. \7 . Wyper , (Cont'd.)
Jan . 7 ,
1909.
delicately made, It was a serious problem for our people $$ get out
enough of these sapphire points to provide for their output and it was
necessary to educate a large number of people along the line of getting
out perfect sapphires and were very seriously handicapped on account of
their inability to produoe a sufficient number of these sapphires for
the ruu chines and attachments that were waiting for them: Then too, the
demand in this Country was so largo that it would seem suicidal to at¬
tempt to supply our foreign people with these parts when they could not
begin to supply the demand in this Country.
How, with regard to the machines that we are turning out with¬
out the end-gate. Jor a long time, we have been supplying this type of
machine in Hew York State on account of a certain patent. In dispens¬
ing with the end- gate , it was necessary to practically reconstruct that
„ r v.4. * -tv . , fcy providing a longer bearing
part ox uhe phonograph Whs. on supported the mandrel, and out pfeople im¬
mediately produced a machine which the trade generally acknowledged to
be superior to the type on whidb the end-gate was used, • So far as I
know, not a single complaint has boon received and all seem to agree
that the machine, without the end-gate, is really superior. you will,
undoubtedly, reoeive-from this time on-some of each type of these mach¬
ines and you should make it clear to your people that each of these
types are late models and that the machines supplied without the end-
gate aro not a new type. They are both new machines, bnt„ in view
of the fact that so many of them have bean manufactured without the end-
gate, it has been decided to abandon the machines on which the end-gate
appears .
Kr* % V/. vyper, (Cent' a,}
«M regard to prices & the „„
UI Wltt Pilous corrcepoadeaoe'.md .. .a.
v„od thet ».tt.r .odd in jmr ^ „
**' ”»««»«» «*•«»* 1» y„,r territory tetter the, .. do.
Iruottag wo have «,«de thl. »,ttor eatlrely Ol.ar to poa, ».
remain a
Yours very truly,
....
j'--k
Ea auger foreign Department.
!
Catalogues, ate ,
7 Jan. 1907
Mr. Oxan Ourfalian,
Adana, Turkey In Asia.
Dear Sir:-
We hare your kind favor of the 7th ult., and complying with
your request, we take pleasure In sanding you, under separate cover,
a complete set of our catalogues, which you will find fully descrip¬
tive of all our manufactures.
We note that you are especially Interested In Moving Picture
machines and film and hy referring to the corresponding catalogue,
you will note that we list machines ranging in price from #75.00 to
#225.00. All these machines are of first class construction and work
-manahip, aa of course they must be, being associated with the name
of the greatest inventor in the world, but if you want the very
best, we recommend our "Underwriter's Model, type "B". This kineto-
scope is used by some of the largeet exhibitors in the U.3. and «a-
■bodles all improvements, including special devices for eliminating
•flicker" and for affording protection against fir*. All our kineto-
scopes are fitted to be operated with light eupplied by direct or
alternating current electricity, but where electric current is nol*
available, we recommend the use of our "Oxylith" outfit, of which
you will find an intereating deaoription in thd catalogue, t;>>
In reply to your enquiry, we beg to aoaure you that we carry
film of every Variety of intereat. Our list, already large, is
being constantly added to, and We anticipate increase of dramatic
vigor in acting with improvements to the limit of possibility,
You will be glad to learn that we are now selling all film
at only $.08 per foot.
In order that you may form an idea of the cost of our latest
’•Underwriter Hodel” machine, an Qxylith" Outfit, a good supply of
-chemicals, extra parts, that are most apt to suffer from wear, and
5000 feet of film, we are enclosing a pro-forma invoice, to the amount
of which we have added the approximate freight charges.
In reply to your enquiry as to the time it takes to run film,
we bag to advise that a thousand foot film will take about twenty
minutes to exhibit. In reply to your further enquiry, we beg to
state that our kinetOBoopes are fitted with stereopticon attachment,
so that you could vary your exhibition by casting still views on
the screen.
With all our kinetoscopeB we send full directions, for operating
and no person of even average intelligence should find himself
incompetent to conduct an exhibition.
Our terms are cash with order; we deliver- goods, free
On board vessel, this port, and wa madge; nb charjgx for packing.
With many thanks for your kind; enquiry and assuring you that
we shall be glad to give you any further information you may desire,
we beg to remain.
Yours very truly,
Ur Manager, foreign Department',
31.8
X
Manage , Compania Edison Hispano Ameri.sana,
Viamonte #515„ Buenos Aires, Argentine P
SUBJECT: BUSIHESS COEDITIOITS.
V/e bag-io acknowledge receipt of -your favor of Eov. 7th in
vfoicn you eckoowl dge receipt of ours of Sept. 16th.
X have read your letter with interest and am not surprised
to receive the information as contained therein.
COBSIffi?MEETTS 1 can appreciate the obstacles you have' -met
in the way of establishing dealers on the terms and conditions which
you impose on prospective Dealers and Jobbers in your territory, your
experience has bean duplicated by nearly all of our Foreign Branches,
and it seems to be a very difficult matter for Dealers in Foreign Terri¬
tories, afuer they are established, to manifest any great interest in
regard to pushing the sale of our goods. The tendsnoy is, ns you -stabs,
to purchase some cheap type of phonograph and simply use our records in
connection with these cheap machines: Then too, we appreciate the fant
that there is a tendency on the part of some Dealers in Foreign Countries
to show a proferenoe for the disc goods. This condition has, undoubted¬
ly teen brought about by the feet that the manufacturers of dfec machines
^ve been a long time catering to this particular branch of business, j
319
Mr. 1’hoB, J. Kern e&y, (Cont'd.)
Jen . 7, 1909.
end most of these mam .f actv rera have a large repertoire of foreign
records, which, naturally, appeal to that particular trade: Then too,
the larger discs .ontain a gj eater amount of matter, enabling the manu¬
facturers of disc records to record many selections that can not he
recorded oomplete on one of our two-minute records. In this connec¬
tion, however, wi:h the introduction of our new "fonberol Records", I
believe, we oan mire than meet this objection. These particular records
run more than four iinute.3 and, in the list we have already issued, you
will note we have :ome very popular selections. The <Suao people,
having been in the foreign field for a mucin longer time, naturally, the
people have boon educate/’, to believe that they are superior to tho
cylindrical machines, but, oo you state, I believe that, just as soon
as you are able to properly place our phonographs before the buying
public, their superiority will be immediately reoognized.
How, in view of the difficulties you have experienced, it is,
undoubtedly, very necessary that you devise some plan to have our goods
properly represented in the different retail establishments in your
City, and you have, in a large measure, solved this problem im. arrang¬
ing with a number of business houses to put , in a sample line of your
machines and records ok consignment, with the understanding that they
will properly display bhese goods at all times and do everything pos¬
sible to encourage their sale.
I wiah to state here that your action in this matter, in •
view of the existing conditions, is thorou^ily approved, although you
J. Kenxedy, ( Coat'd.)
Jan. 7, 1909
understand that this is - d'
Utu,, departure from our policy, ao we
ha. e never allowei any of our 0d. +n ,
S’- de to go out on consignment in foreig,
1 "" iK PlaCi3‘S theso ^oignment accounts, that you
I; CertBln ™ ** ^ their agre ement
stotk “d ^ — *- ,o0aS ecu. ffld,
. . *“ “ ''“i Cf “y °: thS P rties to rtlom S°°ds are consigned not
“7* I”1" *’ *=' -*« ~ «. **** *. to
good condition, l ain ruv.a .
T. . . ' " ' • “ 11b immediatelyv withdraw the goods
It is true, in a ctrfca-n +. . *
will ho a loa3u hut t w/. r ; PerCeat8S° °f reUOrfe 5°nSiened
advertising , * ' ° that thQ resulte -obtained from an
ad . rsrtislng point of v.ew-will offset the loss sustained.
„ . + ln ViSW °f the £b0V°' *”>« *» »o doubt that your action in
hJLTAJej SSteP iD 1116 r%ht dlretrU°a‘ ^ ***** al3°ut
ond " ‘0SS CunSlszunent^ you cover this very fully iE your _lsttQr
„J “ ^ SUeS''3t“ ifs llft6r ^ thiS “ thorough trial, you’
arr_ T ^ ** ^ « discontinue the
arrangement,,
S2IAIL STORE:- t sino.rely trust that it will never be
-essary for you to open a retail store ,n order to bring our g00ds
;'S attentl°a 'if buying public, and, in this connection. i want
inJl "T 0:CP°rieiCe 111 M63;l0° aloaS tola particular line,- ^
existed tj tSd 1 "°Una Pr?°^iCallr the sa- conditions
16 rS 03 y°Us n3 a°abt* fo™4 to Buenos Aires: our Dealers
there were more dead th.n alive; goods were handled in a
Mr, I'hoa. J, Kennedy, t‘ Coat'd, )
manner; no at ten*, Ion was giver to the natter of display; very little
advertising was done and, in fact, the Dealers manifested no interest
whatsoever. Mr. Cabanas end I talked over thi matter for some time;
we visited our Dealers ana Jibbers there and found it almost impossible
to inject any lifj into then, and, after considering the matter very
carefully 'although I knew that Mr. Edison and the Officials of our
Company were very inch opposed to arrangements o? thi3 kind), in view
of existing conflations, it was deemed advisable to open .a retuil stare
in order to bring Et.'.soi, produotB to the attention of the buying public
in Mexico City: A atire was rented on one of the main streets in the
very best part of che City aiid a very attractive display was gotten up.
Very soon after ihe opening a fa:.rly good busineisc was done, but, as our
Manager could ndt givo his personal attention to t-hs management of the
store, it was necessary to hire <'f responsible party to act as manager.
2hie store was continued tar one year and was finally turned over to a
Jobber whom we established. Although this store served our purpose as
an advertising medium, the expense of running same was so large that it
practically eliminated svery dollar of profit and Z bslieve it would be
impossible for us to maintain an organisation in any foreign field with
the idea of making any Honey by doing purely a retail business. It is
possible, howevei, that^ as a last resort, you may deem it necessary to
take this step, but I vrcuia ask you, before considering a matter of this
kind, to kindly 1;ake the matter up with me and I, in turn, will take it
X. Elios. J. Kem edy, (Cr'ntfd.).
md that these commiss
i to allow regular Dealer’s dis~
OOBIMISSIOH HOPPES;--- I aote that' many people in your terri¬
tory purchase goo is through c munition houses and that these coimissipn
houses expect to lake a profit oi such purohaftes. m vie7; of this
position, it is perfectly proper for you to allow reg-.ilar Dealer’s die-
count b to reliahl. commission houses, providing -bhey ere giving you a
reasonable amount of business, and, for your information. wo*lU state
that it is our custom here to allow regular Dealir’s discounts to com
mission houses provided they place an order with us for three (3)
machines and 150 records., After they have placed this order with us
we then allow them Dealer’s discounts on all farther orders, hut it is
distinctly understood th*t they are not to el low any discounts to their
clients-unless their climts are regular established business houses
and give them an initial order for three f&) maohines and 150 records.
If orders come to them from private individuals, then we insist that
they obtain list pricer,, retaining themselves the entire amount of die-
counts allowed*
Vie have. In the past, done a large business through- commission
houses, hut, at the present time, being so well represented .abroad by
our own Companies, we receive very little commission business. It is
perfectly reasonable, however, that a commission house should receive
some concessions in the way of discounts. Our competitors, as a rule,
grant these discounts much more freely than we do and it simply means.
clientB-unlesB their olimts
xa'° Thc,f;* & Kennedy, (OontJdv)
If commission houses „ purohaeo . lttl of „„Mm3 ^ „„
..n»f.o..i.u and rs.eiv, discounts and cannot obtain discounts a„B
another ..nuf.oturor , tiny .m sl.ply divert business; ». too
»««■ »«■ travelling r.pres.nt.tivoe .ho go’
into territories that it Is nlnont i.poositl. for us to r.ooh and, if
we expect them to repnsent our lines, we must ask* i-H m
**«« than employ travelling sale,
, whioh-invariably-maan a large expense. I think it ,
r lines, to allow ther
a large expense, I think it would he very
its could he made with salesmen who are ear:
also cunt on all sales iu.y make for your aocourfc and, in this way you
oan obtain additions! business Without ..ploying Jr.v.lling sate,„en.
msmm-— I note, witt i,W, .hat you say regarding
jour trip to this City and can rladily understand that, in ixjrodnciug
cylindrical machines, ySn mat .tin oonaidarabls opposition.
If yon i. .aha connections with Kessrs. Coats, d to., Who.
I too. vsry .all by repute, 1 think it would work out greatly to your
adv.nt.go, oad, 1» order to influence those people to take np the sale
of our goods,. 1 think it would bo p.rfsotly proper for you to give then
exclusive sale of our good, for a United ti»e. !* thw .ooept
jour proposition, grant the. the territory for . period of one (11 year
and point ont to the. that, if tlo husi.es. in.re.se is satisfactory to
warrant it, you mu he very gl.j to extend the privilege f„. ti.e to
.Jr , i'koB . J . Ee an edy 4 ( Cont ' d , )
If you find it ’.mpoasible to prevail Upon them to accept the
your proposition, then it would ho wise to make the time two
(2) years, us you must admit that, unles
lie assurance that the privilege wouli
i warranted in spending considerable i
lid be extended, they
In making an arrangement of this kind, it would be well to
state in the agreement that the agreement oah be cancelled by either
party upon giving three (3) months notioe.
you can certainly afford to make this proposition to theso
people if they will give you an order for 100 machines and 5,000 records
and guarantee to purchase goods to the amount of $5,000.00 gold within
I havo always understood that Messrs. Coates & Co. were very
responsible; however, I will arrange to get a report through Bradstreete
as to their responsibility and will forward some to you at the ear¬
liest moment: naturally, some little time will elapse before you re¬
ceive this report: lo cable this report would he very expensive ana
very unsatisfactory, consequently, it will he three (3) months before 1
can get the report to you.
In view of the credit extended to responsible people by
European concerns, you may find it necessary to give responsible houses
more than 30 dayB credit. I think it will really *e neoessary for
you, in a measure,, i) oonform with the rule gcveming orodit in your
country, hut it iB -rary necessary that people to whom you extend oredl
be thoroughly responsible .
I trust thj'.t nothing will interfere with your mating this
proposed connection, as I km stire it will work out greatly to your
advantage, and note Hat you will advise us later 4k to the result of
the negotiations with th’esb people.
Yours very tri/.ly.
Manager Foreign Department.
president, Rational Phonograph Co.
Grange. H. J.,
SUBJECT: SHIPMENT OF BRITISH RECORDS
HETUBIIED £1 AUSTRALIA TO LOHDOH ,
I heg to acknowledge receipt of your memorandum of tho 4th
inst., reference #201, attached to Mr. Graf's letter dated Deo. 19th,
1906. having referenoo to a shipment of British Records returned from
our Sydney Office to London for credit.
In order to assist you in rendering a decision in this matter,
I hag to submit the following particulars :-
In a recent letter received from Mr. V/yper, he states that he
has returned 27,455 records to London, 7,600 of which were Vesta Tilley
re cords -a singer who had been very largely advertised by our London Of¬
fice. On the strength of this advertising, Mr. TTyper ordered a very
large quantity of these records but this particular singer's records fell
very flat in Australia, and, knowing that they enjoyed a largo sale in
London, he felt sure they could easily be disposed of.
In Mr. Graf's letter, he statos he finds that the majority of
the records returned by Mr. Ryper are no good as sellers and that he has
a good stook of these himself.
- 2 ~
Jan. 11, 1909.
Mr. Frank 1. Dyer, (Coat'd.)
X have no comment £ to make other than to etate that ,
, . n n-aer a little more than 5,800
Hov. 1st, 1908, we shipped oe Lcndon a o..ae.r
of the very titleB Wyper is retarninff^
On London's order #10,521, received in Hew York Hov. 4th, 08.
covered hy our requisition #17,089, among other titles, London Office
orders 1,000 #13,591 - (Australia returns 400).
500 #13,630 - Australia returns 300.
SSBS'SS." : ”
400 #13,603- «■ ■ n i OOO
400 #13,593 - " 1000 •
0. this particular order, London otter. 12 of tie titla. re¬
turn. A to Australis is sumter, ransins fro. 1» to 1.000 east, s total
^ On London's order #10.519. retired 1. 1« *>* ««• °8"
j „ nrk a total oT ”1*050* and
our requisition #17,087, London orders 10 titles, a
I might go on and refer to other orders received.
X might state that, in the past year, our Australian -Office has
ordered approximately one half million records from London, and, in view
of the fact that the records Australia has returned seem to - saleable
titles. it would seem to .a not to La unrs.sonatle to onpaot Hr. Or.f
to renter a oradit for tie return r.o.rd. at th. prio. paid. ,i.= 10
eaoL. the last ardor eu.out.d fro. London for Australis wa.
4
Hov. 14th, 1908. -
Ln ,1.. of tne atova. it seems Partly fair tLst fc. «•*
sLould erpeot to purSLss.r 5,00 of «« res.rds at 0-1/4# «*. - **■
pri.., L understand, is less tAaa tto oo.t of produotion and only allow
34,
Hr. Frank L. Dyer, f Coat'd.)
- 3 -
Jan. 11, 1909.
oredit for the balance 24,000 as scrap was.
In the matter of rendering credit to Australia on account of
exchange and cut-out records returned from Australia, Hr. Gilmore ad¬
vised me that our London Office would follow the factory at Orange in
rendering oredit for return Material, and, as proof of: this statement,
1 would refer you to oredit rendered by our London Office covering re¬
bate on British ReoordB held in stock at Sydney when the reduction in
jorioe was made: I would refer you to our invoice #2268, dated Feb. 29,
1908, copy of Tfciich I enclose" herewith, covering rebate on British Re¬
cords held in stock June 20, 1907, in amount $6,691.20.. Credit was
rendered at Brussels for this amount: I would also refer you to our in¬
voice #2867 oo ve ring a rebate representing the difference between 14^
and 10?f each on records ea-route from Brussels to Sydney, in anodnt
$908.00. Credit was rendered by the Factory at Orange oovering thiB
claim and I assume that the amount was oharged back to London .
In-as-muoh as all records were oharged to Sydney by our Lon¬
don Office at price of lOjf eaoh as late as Hovember of last year, it
would seem unreasonable for Hr. Graf to expect to only allow 8-1 /4^
for these records. My understanding is that records shipped from
Orange to London are sold on the baais of f.o.b. Mew York, Mr. Graf
being obliged to pay freight and other expenses; whereas, the records
returned from Australia were returned on the basis of f.o.b. London
Sydney Offioe standing all return expenses.
In conclusion would state that I am s
lure Mr. Myper has no
/
desire to take advantage of our London Office in any way, but it is
not unreasonable for him to expect, in view of the business given to
our London Office, that they would render him some assistanoe in dis¬
posing of British Beoords wil'toh were not aooeptable in Australia.
I return, herewith. Hr. Graf's letter for such attention as
you may desire to give to it.
Youri? very truly,
//^
Manager .Foreign Department.
17S / JIB .
Jan. 11, 1909.
Mr. y. W. V!y per.
Manager, National Phonograph Co. of Australia, ltd.,
2. 0. Box 146, Sydney, h. S. VI., Australia,
Dear Sir:-
SUBJEOI:
- — BHIIISH RECORDS
BEIDRHED 10 10HD0H.
I ioe to tend you, herewith, oopy of . oomm.lo.tioo .ddr....a
to our Iroaldoot, Mr. Kyer, elgned by Mr. graf; alao oopj ot Mr.
-«or„do, to an haying referanoe t0 tis sllir»»t of 27,455 r.oord.
"Mob you rotoroad for oredlt « .Mob r.pr.eanted nurplu. Britieh atooM.
I» tbl. ooooeotlon, I would rafor you to your l.ttar of lor.
5th to Mr. Graf aud alao your l.tt.ra of Dot. 27th and Hoy. 23rd addr.a.ad
to th. writer. I alao att.oh copy of v l.ttor addraa.ad to Mr. Myar.
It will, no doubt, surprise you to read Mr. grafts letter, aa
it did .a; this, in yia„ 0f the foot. -as atated in my latter addre.«d
to Sr. hyer.-that you hay. purohae.d fro. London th. p.at year, approrl-
mataly, one half Milieu raoorda „d on whioh it is reasonable to erpeot
eo»e profit was hade. 0f oout,.. we are bmmd .to ad.it that London
h«. allowed you some sub.tantiul or.dits in th. way of granting rabata,
on reduotion .ado in the price of British Seoorda. but th. olai. that Mr
"** nahee-regardlng th. majority of the raeorda you r.tarn to hi.-ls
hardly born, out by the faot. a. *iy» in mf l.ttor to Mr. lyor. Hotur-
lly Mr. graf dooira. to Mho tho boat jpM.ibl. showing at the o»d of
Sir, w. W. Wyper , (Coat'd.)
Jan. 11,
1909.
his fisoal year, and is vory loath to putting through any credits that
he is not obliged to .
As to the out coma of this matter, I will advise you at a later
date just what the result of my oorrespondenoe will he.
Yours very truly.
Manager Foreign Department.
V7S/JTB.
eh closures. (3).
Jan. 12„
1909.
Jffir, C. E. Goodwin „
o/o hyon h Healy,
Wabash & Adame St., Chicago, Ill,,
illy dear Mr, Goodwin:-
I have your favor of the 8th inat, 8 in which you enclose
remittance, §18.50 in amount, on account of tablets recently forwarded,
for which. please aocept my thanks »
Referring to the second paragraph of your letter, would state
that I regret to advise you that I cannot, at this time, give you any
definite information regarding the matter of our obtaining a larger re¬
pertoire of Chinese Records. We fully appreciate the importance of in
creasing our list of Chinese Records, but, on account of the demand for
our products in this Country and in certain Countries abroad-where vra
are well represented, the whole time of our Record Makers has been en¬
tirely taken up. We are contemplating, at this time. Bending out
our people to Mexico, South America and other foreign Fields, and, in ^
view of this work, -which has already been mapped out, -it will be im¬
possible for us, for some time at least, to get into China.
1 shall be pleased, however, to bring this matter to the at¬
tention of our people and thank you for your kind suggestion.
Yours very truly.
I have your favor of See. 29th in which you refer to your
caoie order of Boa, “f/oh -ora ring a numfcor of films taken from a list
oi tao'.ied to Saloo Beyazteast 3ullst:.n #23.
** iOU‘ letter, fou complain that your office ms charged
l;:r foot for t ha S3 films, whereas they were advertised to he
cold at 5/ ur foot..
In -reify would state that Sales Department Bulletin #23, or-
fact -any of thes-. builewuss -fsr.ee. from Orange,, have no reference what¬
ever to the foreign businans. Those bulletins are sent to you along
./rth othor proa tod matter as issued hy the factory in accordance with
my instructions, and this is done only to keep you thoroughly posted
with regard to ..natters in general. If this list was issued hy the
Foreign Department, then it would have been perfectly proper for you
to have ordered as you did I might state, however, for your informa¬
tion, that the list of film* referred to represents a stock which have
l‘“ 0,rrl*a ta s*°‘* ^ «"• .« m„ ft0E „«
13 Jan. 1809
Rg horns, etc, pro-forma
»r. W.K. Stall,
Oosntpo, Chihuahua, Mexico.
Rear 8ir:-
W“ haT° y0Ur klnd f^or of the 18th ult., in reply to
our recent letter.
We note that you wish ue to state whether we connlder the “True
. h0r" tatt" «» bora, ** .. OTntl0„d
cur letter, In reply, we heg to advise that the "True tone"
horn is a very good horn hut we reconmend the metallic horn. It
-e adopted hy our factory only after a long course of careful ex¬
perimentation to determine Just nhat material and ** shape of
*l7t J*** tOSt EdaPt°d t0 BiTB 8Uperior when used in con-
on wth our phonographs. Moreover, you will note that it i8
or a very artistic and neat design. -
you . ** "0t“ ,6“ ”* ,hM' « »■**■« «. or tss.oo
"** *"** * g°°d -lootion indeed. Of Spring Motor models
M la. y *’ 'M"*«*1* “» »•■«. xn order ttot tom
».( th. „o.t of aoli„„a ln 0c>wo> „ ^
llb.«f or oneloelns . „no-ro™a ln,«oo. ,miln
“ *“■* " *». «»**„,. t^^ortou™
inolMM t» hontow e.la ,aulaM
records
on the invoice, aa we note from your previous letter that you thought
of purchasing that number*
In reply to your enquiry for catalogues of Adelina Patti* e
pieces, we beg to advise that the lady in question has not had the
honor of singing for the Edison phonograph* We Bhall be glad to
oend you the other catalogues you request*
Thanking you for your continued favors and trusting that we
may Boon have the pleasure of filling an order for your account, we
bog to remain.
Yours very truly.
Manager, foreign Department i '
National Phonograph Company Records
Foreign Department Letterbook #3
This letterbook covers the period March 16-23, 1909. It contains copies
of correspondence generated by and for Walter Stevens, manager of the
Foreign Department. Among the correspondents are George M. Nisbettand L.
L. Lewis of the Mexican National Phonograph Co. in Mexico City; and William W.
Wyper of the National Phonograph Co. of Australia, Ltd., in Sydney. Also
included are letters to customers and agents in Africa, Asia, South America,
Europe, and the Caribbean, as well as to commission houses in New York!
Newark, and elsewhere. Many of the letters are in response to inquiries about
the cost and supply of phonographs, sound recordings, films, projectors,
numbering machines and other Edison products. There are also letters regarding
indigenous-language recordings, national and international tastes in music, and
the need for fire precautions in motion picture exhibition houses in Mexico. One
letter requests a sample of Australian bitumen for Edison. Also included are
numerous routine letters acknowledging orders and shipments. Some of the
letters are in Spanish, German, and French. The spine is marked "Foreign Dep't,"
"154," and "N.P.Co." The book contains 492 numbered pages and an index
Less than 10 percent of the book has been selected.
MARCH 13-1909
0. Pardee,
Pardee Ellenberger Co.,
Hew Haven, Ct.
i.iar Hr. Pardee: —
Our Hr. Xreton ha. ^nde^to rotten tie,
addrels'of^one3 of ' our Jobber, or dealers in
Calcutta.^'" - Indian jobber, is
you the naine and address ox .
Calcutta. repiy -would state ^eVnactivlTdealer1 in Calcutta , -and
Ttf-tfoa »e very Elad to_serjro+you. ^ giyen v/ill meet your require-
-ne very glafto serve you.
Trusting the information
, X rema-in,
Manager foreign Pep't.
LVR
c
Mar oh. 19, 1909.
Cr.. John Pelzer,
-*m«8«r. iMrtogrwl. »*.. B.i«» «*•
SUBJECT: KIHETOSCOPES.
I am to receipt of a communication from Hr. EiBhett. Manager
Of tto Meric* Office, i» *1* *> ■»«*« «“*• »» °f *
,lrt™ fire. *1.1. .«*«•» *» • ...1 *» <*>»**** Pl*«.
1. 0.. of Uexl.cc Cilice, too aulCorities are x.rf
stirred cj> ccd are ecd..xorlaS-l. •«*» I”TOt *
of trouble of this kind.
The following is an extra ot from his letter
"There are one or two matters
down here which may he of Sreatim-
portanoe to ub and X was most anxious
to have the instruction and guidance
of Mr. Dyer and yourself bb to the
proper handling of Bame. Bor dnstanoa,
I waB adviaed on Saturday last that a
ruling has haen made either hy the Bo- J
lioe Department or the Bederal Dia triot , &
that no Moving pioture Machine would he
allowed in any place ofpuhlicamuae
ment other than the lathe . I have not
„.i -hB an able to authenticate thiB ro.-
mS If it turne out to he a fact however,
it^waa my intention to take this matter
pp with a very prominent attorney in
t&is town, hy the name of Bar do, (who is
Mr. John Pel!
{ Cont * 4. )
Mar oh 19, 1909.,
the president .-and «seroises a greet
deal of influence on this aooount.
He is also attorhEgr for?'the hig
Smelting Crusts and bthcir large Araerl-
oan Syndicates) and Request him to
take such aotion qb Might be necessary
to oppose or oountoraot , such- legisla¬
tion, and to ins 1st; on ah aotuul de¬
monstration of the fire-proof qualities
of our machine, as compared with the
Pa the instruments and it might he possible,
through his skilful handling that, by the
expenditure of a few thousand dollars, we
oan get our machine declared as the standard,
thus putting the shoe on the other foot.
Of oourse I do not know how far yon may bo
willing that I should go in -this matter, but
it Beams to me that it would be a bad busi¬
ness proposition to knuokle down to any suoh
ruling without a strenuous effort owing to
the disastrous effeot it would have on busi¬
ness of the Edison Kfg. Co, throughout the
rest of the Republic; and all other latin-
Amerioan countries, I wish you would send
me all documents you possibly oan, bearing
on this subjeot, such. £s oopies of the cer¬
tificates, if any, granted by the ffire De¬
partment of the large cities in the States,
and similar documents from the local Board
of Underwriters , eto. I of course will
keep you as fully advised on this subject
as possible."
With reference to the above, 1 should he pleased to have yon
give me all the information you have in the form of dooumente from the
local Board of Underwriters, Eire Department, eto,
I cannot but feel that Mr, Hiebett is unnecessarily alarmed
and my understanding has always been that our Einetosoopes were vastlj
superior to the Pathe , so far as Bafety ip oon<jernea,
Any information that yon oan give *hi<»h will assist Mr,
at
292
- OPBS.
T „ **aiio amuee-
*“* °f this that thSre DUSt * °°»e ffllataiQ
*■*• a„ie; rraiy -*«*« *« * m-
6»r of fij.e ^ that ia bettor eoui* * 1 aot a plo“
. ‘ ~ “““• « to fef 'ri ll'0 ““»*• «■« *«-
4a„ ^tot,^
“ *“* b. that thrt^^1* h8VS *+>'**«* °omeotlona
:: tirt t. „a, *7^ *• ** «» c; zt°-
— ZlZL" “* “**“ - -
««. oto 88 "*d* br *>“ *MM Of M SS* «» w*»-
- “4‘ - - - X «J “*•
111 tie necessary Information j j
Hr. George
Bishett, (Cont'd.)
March 19* 1909,
will oOmmunioate with you again.
Under the airoumstanoes , I hardly think it wsuld he advisable,
if such a ruling had heen made, to take immediate steps to fight the
matter: It might be well, however, td Obtain all the information possible
and, upon receipt of Buoh information from you, I rill then go into the
matter very thoroughly with Mr, Dyer and he will then suggest what is
best to do.
Very truly yours, #
J.4.C • /
Manager foreign Department,
307
Mr‘ A. L. Crook.
March 19, 1909>
-Dear sir;-
100 -anloague, Maaila, p, x.,
SUBJECT; E SAIEE’S BISCOUHTS.
ln — »» «ii . ZT " wr «- «-
»««»»« aau, plMS> ^ ”“U“S' of 4»^ . i«*
“ r,tr— «*» -,.to ~ *• m to °°*
We 0811 assure you w e *,,,
*« * t« a«a tor t*e s J 07'8<,ISts tJ“ f‘rt «- «■• -u.
"* «*»• f ,4reM °f **»“•“. “4. *. to
ale® basia y<mr kind offer oa a salary „ *
~ - - - - - errr-
°°T”. « leToTir S“““a7°'*' “3Br ”*»*"“• toStoter.d ^
”” tote., B.cord llsts ^ tra°* “*»■ “* “toXoOTe., ^ .
^ucnJZZ 'ZnZT “
»« «* • Ie«l„, er„ttos 7m iUoomtl *0 “t—1‘
It Will afford us m Closed disoouat sheet.
— «r throneh
if favored, 0ur best at* 4-, * Conmlssioa House, aad,
• —H« ^0r'
tooili) iedne
]0k
Mr. A. L, Crook, (cont’d.)
Hardh 19, l909«
and carefhlly executing your orders.
We shall also he pleased to allow you an additional 2 £ dis¬
count for cash, if our invoice is paid within 10 days from the invoice
date .
We deliver goods f.o.b. vessel this port, no Charge for pack¬
ing.
Hoping to have the pleasure of serving you and thanking you
for your kind inquiry, we beg to remain.
Very truly yours.
Manager Foreign Department.
EHGLQSOKES. SEE REGISIEREP COVER.
E. S:- We would also call your attention to
the recent reduction we made in the price t
of our Standard Records , _for your terri- J
tory, from 36^ ©a; e6# list. j;
liar cih. 19, 1909.
tMh '&**$*>■
..
i Tssax
f jgk , s%aint5" i -
tr r*
i anoi*aesaift»
fSaob 4w ,9crld
fa
KaWa ti£*lw
fA- O^l^gjy
SUBJECT: MOORI RECORDS,
We bag to acknowledge receipt of your esteemed favor of the
5th ulto. advising that you have recently taken up the sale of our ap¬
paratus in your territory, and are anxious that wa should supply a num¬
ber of Mcipri Records.
In reply, TOUia state that our method of producing our latest
improved reoords is such that it would be impossible for us to make use
of any Maori Master Reoords which you might take. we appreciate
that it would prove advantageous both to you and ua, if we were in a
position to supply a number of these particular records, but the only
waybthia oould be -done would be for us to send our Recording Experts to
your territory to do this work; However, in view of the enormous amount
of work we have on hand -producing different records, it will be impossible
for ua to send our Experts into your territory for this work;
Ue might state that our reoords-as now eupplied-are originally
produced on apeoial Master Blanks, and any reoords, which you might send
us, would be of no use to us Whatsoever, as it would be impossible for
us to manufacture -from the Masters you may supply us-new reoords. i
<a Mercip.16^ 1909
1 i - 1, \
Mr. Jacques Albert,
Messrs. Albert & Son,
137-139 King St., :
My dear Mr. Albert:-
I have year esteemed favor of the;* 1st nl to. , 'ikna “it s need- **_
less to state that 1 was very glad to reoeivb your ofiHpB%i«gti'en , al— \
though it was a source of regret "to me to learn that? on«iaoq:puM£, of %
S V V\ 9
conditions as existing, your esteSined house found it neoessary tjp diB-»
oontinue the sale of our apparatuses your territory, u ,,, f
with rafsrSBee to the difficulty experienced with our Aus¬
tralian Office, 1 am sure you will appreciate that, vhen our Mr. Wyper
was placed in charge Of the Australian Office, he was appointed to that
position solely on his merits.
MT. Wyper was a personal friend of mine, and I have .known him
intimately for years; our associations were oIosb, and, without hesita¬
tion, I oan say that he was one of the beBt friends 2 war had, in a
business way, his connections were of the very best, and he brought with
him testimonials of the highest character, and we considered ourselves
very fortunate indeed in scouring so excellent a man to represent us in
the important work to which he was assigned. It As the policy of our
Company, when they are satisfied with a man*s character and ability, to
Mr. Jacques Albert, (Cont'd.l
Marcih 16, 1909.
Place implicit confidence in him, when he is appointed to fill an im¬
portant position, and, when foreign Representatives are appointed, com¬
plete authority is given them and they are supported in every possible
way by our several people.
That there should have been any misunderstanding between your
good selves and ilr, Wyper has been the source of deep regret to me, in
view of paBt associations, but, knowing Mr, Wyper-as I do-to be a man
of rare taot and pleasing personality, I oannot understand why you should
have experienced the slightest difficulty in your business dealings with
him.
There is nothing further that I can say in this matter, other
than to again express regret that you have found it necessary to - discon¬
tinue your business relations with our Company in Sydney, Australia.
I am very glad to know that your son and his family will
favor us with a visit the early part of next year, and also to learn
that, the year following, yourself and wife will favor us with a visit.
It is needless to state that I shell anticipate the pleasure of seeing
your son and his family, also your good self and wife, during your stay
in Hew York.
■yesterday, I revived a oopy of your hook entitled "Rational
Health" , and I oan assure you tfiat, at the earliest opportunity, I shall
take pleasure in perusing very oorefullp- .the o entente of -this valuable
book. I am sure I Bhall be greatly benefited"^ ao doing, and I desire
to thank you for your thoughtfulness in sending me a' xjopy of this val¬
uable book.
Mr. Jacques Albert, (Coat’d,)
Mardh 16, 1909.
I am pleased to advise you that my family and self are, at
the present, enjoying very exoellent health, and 1 trust that this commun¬
ication will find you and yours in a !j.ike condition.
With kind regards, and wishing to he remembered to your good
people, I beg to remain, I
Sincerely yours.
WS/JIB.
Nat. Phono. Co
Austr
for yonr information would state that practically ai:
shipped ;o us hy tbs factory in carload lots. Shipmi
Lii;.y examined whe-i they are placed invthe car, and the
the regular manner. In addition to this precaution, >
:>v«d a number of special locks, and after the car is si
special locks are placed on the oar, and are not reio’
car reaches its destination. The shipments are the]
in carload lots, and delivered alongside the Steamshij
it ur ally after these shipments are delivered to che Sti
ns ibility ceases.
. The Steamship Company's Agent in this city reported ■
it shipment, a phonograph had been removed from the cai
ase was then filled with liay. You can appreciate that
Dgraph had been taken out of the oasr prior to its del:
aamship Pier, our people would certainly have discovert
phonograph had been abstracted, on account of the weigl
se. Naturally the Steamship Company try to evade tl
Llity for the safe delivery of shipments, they claiminj
poods are stolen prior to delivery to them. The Stas
any are bound to assume this responsibility, in view oi
ihut they give us a clean Bill of Lading, and there is
Y you should not place claim on them for any shortage v
If, however, yon find it impossible to collect from tl
e necessary then for your office to assume the loss, as
isistently ask the factory to make good shortages. Of
i a matter of defective material,- that is another cue s
i you at any time receive defective goods, it will be j
jper for you to place claim upon us, and we in turn v/i]
endeavor to have the factory entertain such claim.
National Phonograph Company Records
Foreign Department Letterbook #4
This letterbook covers the period September 1 91 0-March 1911. It contains
copies of correspondence generated by Walter Stevens, manager of the Foreign
Department, and by Louis Reichert, his assistant manager. Among the
correspondents are Thomas J. Kennedy, resident manager of the Compania
Edison Hispano Americana in Buenos Aires, and William G. Bee, manager of
sales for the Edison Storage Battery Co. Also included are letters to Agar, Cross
& Co. in Argentina; W. R. Grace & Co. in Peru; and other potential agents and
customers in Africa, Asia, South America, Europe, and the Caribbean. Except
for one letter relating to kinetoscope motors, all of the correspondence pertains
to the sale of Edison storage batteries. Included are letters introducing the
product line, acknowledging or checking on orders, and responding to inquiries.
Some of the letters contain references to the Lansden Co., Anderson Carriage
Co., and S. R. Bailey & Co., which used Edison storage batteries in their electric
vehicles. There are also references to the Federal Storage Battery Car Co. and
Electric Omnibus and Truck Co., manufacturers of trolleys and omnibuses, and
to the Electric Launch Co., which manufactured motor boats equipped with
Edison storage batteries. Some of the letters are in Spanish, German, and
French. The spine is stamped "Letters" and "Foreign Dept" and is labeled
"Storage Battery," "1 ," and "September 1 6, 1 91 0 To March 1 0, 1 91 1 ." The book
contains 499 numbered pages and an index. Less than 10 percent of the book
has been selected.
Manuel Caragol f- Son,
We beg to acknowledge receipt ofyra favor of the 7th Inst., In wh
;hat yon hare forwarded a copy of our ca talogae to Bxorno. Qr.Oondo d.
Tn accordance with your request, wo take pleasure In forwarding add
if our catalogue and descriptive matter, to the above gentleman,
tQ the sale of Edison Storage Batteries in foreign c
.d state that we are at the present time in correspondence wi,th a party -n -Barco
t> Spain, Who, we believe, is fully qualified to represent ua in that oountry.
irfM state, however, for your information, that there arc a number of foreign
wMoh are not reproe anted, and if you will kindly advise ue as to the t*
iutilro to cover, vn should bo pleased to inform you Whether or we arc rep re
, the territory you mention. Wo might also say that ,m do not grant the ootclut
of these Battsrioe to- anyone, hut whore u fin. elgnifiee thttir intention of taking
,o sale of the Battery i« h largo way, ah* use every «*W* to advance the sale
wo are wliU** to protect them by referring in.uirlos orders received di~
... _ „ . j n,r ,mdo, Bland that 1* would bo impossible for us to gi
Messrs. John Pal-laer Jr,
Finsbury Court,, Ipinsbury Pavement,
London, E, C, , England.
Your esteemed [ favor., of the i£th ulto., addressed
Storage Battery' Dos, , Orange, N. J* , has been referred
to the Edison Storage Ea-ti.sry'Ook , Oxfcn
to the Export Department for attention.
In ^Ply wotild state thdt at this writing we are not in
position to give you any definite itifoMriation regarding the sale of
the Edison Batteries iii ErtglaHd* ah our plans have hot as yet been
perfected Covering the hale of these batteries in Great Britain.
we thkh pleasure in advising* however, that We are in
position to accept and execute orders for the Edison Batteries for
Shipment to India* and we are sending you under separate cover, our
latest Price Lists and Catalogues Which you will find descriptive of
Storage Battery* By referring thereto you will note that
these oat ter is s can be successfully used in connection with motor
vehicles, also for sparking and ignition purposes. The prices of
these batteries are as shown in catalogue, and on any orders receiv¬
ed for shipment to India, we would be pleased to allow our maximum
discount; viz*, 20^6 thereon.
As the EdiBOn Storage Battery Company is obliged to pay
Mr. Edison royalties on all batteries shipped into India, it will
be necessary for you to add to the net amount of the invoice, after
discount hue been deducted* BO Cents per cell for A— 4 cell; 90
cents par oell fop A **tS cell, and $1,20 per cell for A— c cell, end
the same proportion for other types.
In reference to pleasure and commercial motor oars
equipped with Edison Batteries, if you will kindly communicate with
B, R, Bailpy & Co,, <Ameabury, Mass., The Anderson Carriage Co,, Detroit
Michigan, or the lanaden Co*, Newark, IT. J, , they v/ill be Dl eased to
send you catalogues descriptive of their electric vehicles. The
two former, manufacture pleasure vehicles, and the latter, large
electric truoks used for commercial purposes.
We thah|c you for your kind inquiry, and can assure you it
will afford us pleasure to receive and execute your order for any
number of Edison Cel.ls you may require!, for shipment tn India,
Xaure very truly 9 i
Manager, foreign hep ' t.
1
The Anderson Carriage Co, „
Detroit, Mich.
Gentl amenS—
We are in receipt of a communication fra«pMr.
Arturo Landa* Paaeo do- Gracia 96, Barcelona, Spain, and we expert
to arrange with Mr. Lana* to have him take up the sale of our Storage
Batteries in Spain in a large way.
He is very anxious to take up the sale of your vehicles
in connection with our "batteries, and we have advised him that we
would communicate with you asking that you grant him the sale of
ydur Vdhioles in his territory. If you are inclined to do so,
we would "be pleased to have you communicate with Mr. Landa, and
we trust that "business relations may "be estaliBAshed "between you.
We might stat6, however, that we know nothing whatever
about Mr. Landa' s capabilities, nor are we conversant with'biB finan¬
cial standing, and wa are,- therefore, not in position to give you
any definite information regarding sane. Our Terms with Mr. Landa
for the present at least, will he Cash with Order on all business
done with him, unless he furnishes us- wiih unquestionable refer¬
ences. We have applied to the Commercial Agencies for a
report, but as yet same has not reached us.
Mr. Landa seems vary much interested, and we believe
intends to take up the sale of our batteries in a serious way.
So long as he gives us an amount of business Which we deem ample to
meet the requirements of the Trade in his territory, we shall con-
oinue relations with him.
We trust that ypu will communicate with Mi, Landa, and
advise him whether you are inclined to -do business with him, or
not*
Thanking you in advance for your kind attention, we re¬
main.
Yows very truly,
Manage?, Foreign
wpAvb
Newark, H. J.
Gentleman:—
Sept* 20-1910*
: Storage
I,anda to havs -Jllm taka UP the sale of c
Batteries in a large way in Spain.
He is very anxious to taka up the sale of your vehicles
in connection with our batteries, and we have advised him that we
would comnunicate with you asking that you grant him the sale of
^ULV^iSld8,1^h^,teiiVitory' Xi you inclined to do so,
we would be pleased to have you communicate with Mr, Landa and
we trust that business relations may be established between you*
About T ■ n^?ht 3taif-,’.??WeT0r* that we know nothing whatever
about «r land a'e capabilities, nor are we conversant with his finan-
f1*1 vf are. therefore, not in position to give you
any definite information regarding same. Our lerma with Mr* Landa
anL''hf*£I‘v?0nt l9a,st* w111 he Cash with Order on all business
cesS ,lth him> unless hs furnishes us with unquestionable reihren-
We have applied for a report to the Commercial Agencies
out as yet same has not been received. *
Mr. Landa seems very much interested and we believe in¬
tends to take up the sale of our batteries in a very serious way. ’
So long as he gives an amount of business which we deem
ample for the trades’ requirements in his territory, we shall be
pleased to continue business relations with him.
We trust that you will communicate with Mr. Landa and
advise him whether you are inclined to do business with him or not.
Shanking you in advance for your kind attention, we re¬
main,
Yours very truly.
Manner. Foreign Department.
wsAvh
!7a bolieve that the plan as outlined in your lottor, namely, that lnmediato
ycv.r Company is organized,, you purchase a number of Batteries, rlso elootrio vohioleo
and begin an active campaign throughout Nov Zealand, introduce and advertise the Bat¬
teries und also to procure business, is a good one; and it is needless to stato tiiat
no shall be pleasod to rnceivo and oxuouto any orders forwarder to us, assuring you t
prompt and oaroful attention will be given to the matter of shipment.
Terraat A;- our tarns aro invariably cash with order, we should be pleased t
nave you: arrange a credit in Tier York, agai?ist which v:e coicld draw draft against docu
nents. By doing this, it would enable you to take advantage of our 25? oash discount,
vh’ch we allow provided cash accompanies the order; or, if your prefer, you can pur¬
chase a draft on Now York through your local bank, sending us remittance with the crdi
cr in the event of your cabling, you could arrange to cable remittance to us.
Cable: In accordance with the suggestion as contained in your letter, v/e
ire cabling you as follows: —
"APPROVE
BftrCOlCHE, s spoil IBa
• B» 0. Ao» gaptlembre 19 de 191 C
EUy 3r. naastro:-
Han place acuoarlo racito ds so. cuy stents carta dal 20 del parade nes, en la quo
T. acmes raeldo do la nnestra del 2? de Julio, Con gusto notamoa que V, acepte nncatn
propoelclfiu, referente a enviar a V« tedae las solioltudea quo reclbeooa do oae territo-
rio con tal quo se refleren £ la Hateria Edison ds Acumlaelfin. Deseaaoa darle las rfc,
orpreelTaa grades par la prerasa que noo hace do cue barn todcs los eefncrr.oe pooitlee
para lograr an gran nogoclo on as terrltcrio ccn la Tent* de eate taterla. satanoo se~
guroa da que oi sate naeccio ae tup rondo do qua oanera aerie bus eafuerzos tendrln gran
Sxlto.
VHHictacs m wscri
Beapeote 5 quo la lanaden Co., In Andersen Carriage Co., y la 3. H. Bailey Co., le
oanoadan 4 y. la rente de sus ve'nlculca el4ctrloOs on Kapafiaj manlXeet&noolo que tendre-
a»e nuobo gusto en poneraos en ccwmlcaoi&a ccn. dlobes aoppeEleo y los rogwecoa cue le
CQAaodan £ v. ia repreeentaolon de aus vehfouloa en Sepafte, el fuere pocllilc el quo la
pudieren eonoeder* y aonflaooa quo lea sera po Bible el ha cor lod axxeglos neoeearioa ooc
V.
OAmOQOS T ELSOTKOTIPOC:
Tendremoe tmcho gusto en mendarle dontro de pooo un aleetrotlpo del Hr, Edison
para quo lo U8e_eu an catfilogo, y tttnbiin oleotrotlpoe de naeatroe dlfarentee tipoe df
4
fitt* oatdjfttaos da lc que its; sica tfaspeeto u uae 60jusxti>a quo xeaxbii
al tiao do l&a Bat arias Edison da Aoumlaolin don loooaotoxaa, y yarn su gobieruo B«ni“
featfimoslo quo no podsaoa xeoomeiiany aueotro tipo actual do Baterta para oor usodo on
aonaxl&a con iooomotoraa; pero ol 3r„ Edison festfi ehora txobajaado on rms gatcrla o5b
Srenfet if tan pronto teagaaos algo defluido quo oomanloar reapocto a 6so, tendremos
gusto en paxtlciparoelo, I & pila nae grande quo suadniotraaoa nhoxa as ol tipo
»A"-8* liotdde. en $26 >,00.
WtmjiSS ELEOEHICOSi
Bos entorscos tacbien <le lo que non aoauniea tooonto 6. una solioltuu rospsctc
a trsnrlss oliotriooa, y eatamca dendo a eats asunto nueatra ateacifo y nos pondre’-
moo on ooBstnioaei 6n con 7„ an fesiia asSa tardo, sobre eao, puao para entonaes le daxe-
a*oa lnfontaoiSn caspleta,
Bospondiendo a su progunta, aanifestfefflsle que ol peso del 3iectr6llto eats in-
oluido oon los otroo cleffientos oontenidoa an laa pilaec
Con gusto Infoccauspole quo la But ex la Edison do Aoaaalaol&i sate plenamenta
rerjl3trsda y proteglda pox patentee, y debldaeentq reglatrada en Sapafia; pox lo
tanto„ cocprendora y. que no bay peligro do que nuestroc intexesea eufran da leaner®
alcana pox tal conaopto.
i
CCKDICIQEES:
I,ob pxooloe de oatSlogo de laa Baterlaa Edison ectia 3afialndoe en nuestrea oat£-
logoe, y on viqta de los or region qua henos iieoho con V., tendroooa guato en -.'.ancederle
nuestxo deoouentp Ultimo, L saber, el 20# dal preaio aoftalede on nqeotroa catalogoa, y
el el dlnaro vinlere oon el pedldo, le conoaderiamos ua descaento adloloaal de 2# por
pogo al oontado, ouyo deocuento taiabien se lo oonoodarlemoo si V* abrllae an oxldlto
en Hueve Yorfc contra el quo pudlerwnos gixa r. C&ao nada aboolut ament e aabeaoa xes-
papto & eu reoponBabllldad Unanolora, rog&nosle que ten@i la bondad de exniarnoa
x omasa cubrlendo aus pedldon, 5 ol aol lo preflriSse, d«no« referonolaa reqpeoto
k an, raaponsabllldad financiera; dfindonoa 4ao eatlofaoerla los roquleltos y el
ml iuwstlgor eneoKtrAmta qua eats t. eon dt/eete S oredttc utjteroin,, ieneMstoi* gO*it
en ejeoatar ana pedldos, eoucedl Indole un plaso de trolntu dies & conta r'dt le fedtc de
la factura.
Ariuiioios
Con ornno gusto envlarfimosle ooa oada embarque una cantidad literal de net ei-la is>-
preaa, y oon an primer pedido envlaremoslo taabl6n un model o do dlforefltee- tipos de
naeatrae pll&s, quo podrfi 7* uaar para fines de exhibiolon. Con referenda 6 ouadnie-
trtd* Bat or fee para los colegion; ob Sate nil cerunto qua Oebe 7. zenjar, puss noaotros no
eetarfamon en posici&a de auninlatrar 6 esOa diferonter cologios nueefraa bateriaa, fi
preeio raenor qus el de oatlilogo,
UTPCETMlOir TSCBICAr
Enoraotrara Y, on maestro catalogs titulado "The Edison Storage Battery" (La B=te-
rla Edison de Aotanulaoioa) , inforcacion may util y dates considerables, y por aeparado
eatenoD envlaadole trarlo j iagraaas tecnicos, one le darfin atfin mas iafonnaclfinj el cual~
quiera ves suxgieae algfii-; cueati^s que no fnera 7, coupe tente para resolver, tendrfa-
ffios nmusho gusto en d&rle la Info rmac ion neceearia, ai lo oenstites 7^4 nnaotre s*ud-
deraclSn,
Reepecto £ la acluclfin de potass, maaifentamoele qne reoocendamoe el ueo de nuestre-
prodwtos pern tafia tsrde pueda ear que arreglcmos el enviarla en forma de orietal.
Benpeoto d la reoarga de lao Bateriaa; los aparatos neceaarioa para la reoarga pne~
dep aer obtenidoa de cnalquiero casa de efeotos elfiotricos de oonfisnna, y no debe
perinentar r, dificaltad alguna en obtenerloa,
GARfillSZat
Beapeoto i eete aaunto manifeotfimoale que en loa Eatados ttaldoe gerantiaamoa nueotowi
bateriaa oomo sigue: Para vehiouloo oomeroialee, tres afica; para lgnlolfia 4 otro tra-
bajo, a in oo aEoa; pe» aeria ispoaible el que nosotroa difiramos una garentfa aobre naeo-
txaa bateriaa para paieea extranjeroe, £ no aer la gar ant ia da que aon meoanio^wnte per-
feoiae, pues no eatamos en posiolfin de nab?* q«e trataudento reoibirlsa 6 an qpe oondi-
oioneo sarian used as.
30
slalom
Hotamos qua deaea V. quo lo aandemoo «na dr c.vla non do las Pilao Tipo A«4» A*6t
A“3; y ana Batorla B-4 do 5 piles, y ana Tipo is- . de 7 pilao, cpmpleta, inoltjycndo el
qparato da llenarlan. Incluirao aqu£ un preeupueeto quo denote el ooeto de laa ale-
uffiSy y oomo ya le hfinjoa arloado que nuoatraa condlolones requleren el dlnoro oon el
pedido, ccnelderarfamoa nn favor el qae 7» tuvlere a Men enviaimco romeea pera dubrir
el valor de eeta factor* „ lnolueo loa gastOa de transports, y tan pronto reclbwnos an
tamo tic, derenjoa al denemperio de an pedldo nweatra mejor atenciSn.
Heapondlendo i sue divereao preguxrtas ccatenldee on ea oarta de Agosto 34, noa
pormitlmos somater fi V, It eigclente Infortrecicn:-
(1) P, - {A qu€ voltage n&zdiao por pile dehe pararoe la cares con corriente
normal?
~ Hosotroa oargamos enterozoante por eepere -boron,.
(Z'j ?„ - En noeatro oatllogo deciaos que la daraci&a de la caxgs pnedo varlar-
se a voluntadi la potenoia xada alta poaible ac obtendri con nna oaiga
. do dies horas.
2E> - Hanta a aieto boros a nusfin de cares noitsl la efleaoia es loarewp de
aiete a dies horns la oapaoldad oomenta; pero la eficaoio si s« «»•■■■
tiene„
(3i P„ ~/S n one m£nlt» de tienpo imede oargarae ana batorla aim dalterae?
-Hire la curse Ho .9 (lnclaaa). Cinco boras t tempo ndnlco para ana
csrga nornal carpi eta.
(4) ?,
a.
(5> P.,
“jA quS voltage nfnlno por pil^flebe pararso la ccrgn oon corriejte
normal ?
-Las pi laa pueden dee-iargarse beats qua eat& couplet amente agefca-
daa sln^oBtengsn el manor daRo. Kcaotros conaldermnoa la deacarga
ooapleta cnendo la pila llegcie a 1.00 voltio, alendo todr.a laa oandl-
ciosea narmalOBo
-Oapaoldad 5 potenoia en oada tipo ea aapexe-horaa., tPneden ladicer
Xa oapaoldad pom otroa tSftos de da coarse* por ej«s>lo0 ea Sc 10 y
2E boras?
•Le nandareroos ourvae que naqatran aao. La oape.oiiaO. -it la pile
no se altera cucbo por variar el tipo de deneargaj el efaoto^a ee
el voltage de las pilaa- Bn el tipo A-4, ?e obtendr* ,03 de valtio
le disminuol6n -nor oada 10 ompcrloa de anraanto on eaqsoO de la doe-
oaxga normaljen el tipo A-S, one diacdanaidn Ae ,03 por aujoento do
IB amperios, y para el tipo A-0, ana diatlnnoion d* ,03 de voltio
por oada 20 emperloa de anmanto.
-jpaoden indioar la curve do laa potenclaleB oon oirauito abler to
31
-v-* ..«<• w,;,
t i--i - .•/ ■.'•* ??* ^:. ■"*'.- 5 . ' **T**.A
ea oirouJto ablerfco no tienc valor pnrtieuiar pora el funolonsmiento
prSatloo,
(7)P-'Habianflo estedo la plla deoaonsaado oierto tlampo, eta.
n-ttaa plla coinpleteaente deaoargada, as! oooo ana pile couplatassonte aorgada,
deacons ar£ da 1.4 a 1.46 voltioa; plla 9 da voltage ablerko coneataflas an
opoololSn, no ee 1 goal aria nuoho, aunque estfin on lifer oaten estados do car-
(8)p-iCuol as la perdida dlor.ln de pofconola da uaa Bator! a ccrgadaj pero no uaa-
4*? . ' .
B-las tarda le eiwis?csos la curva. La perdiaa an % por p erjaaneaer sin fnn-
clonar i 75o Parethelt, is com algu es-
12 horaoa.... 6% 6 lias . 11-1/2#
1 dla . . 9% 7 " oo.. .12#
2 dins...... 9-1/2# 8 " ..,...ia~l/2?S
3 " ......Mtf 9 " oo... 13#
4 » .....*10-1/2# 10 " .....13-1/2#
5 - .,..,.115?
(9) SKDespnio de oargarso, qua pore lento ne plerde? '
B- Ob serve la ourva 6-B qua le enviare'aos.
(10) B-oCaal es el mojor netodo de juzgar del grade de oarga de nna Pila Edison?
B- JJanSjeae ooao tm tanque. Gulsse por la oarga de anpero-hora.,
(11) B-Peso de la noluciSn de potaaa nacesaria para loa diforentes tlpos do pilas.
B-pSgina 27 del libro da inforiracicn.
(12) P-Aluirisredo do venlculos.
B-Ho es neoeaario regularlaar ol voltage para las luoea del vahloulo; es prefe
ribla que no oean m£s de veiate. OonSctesa con una seccion de la boterla.
(14) b-jUob naadarlan plan del tablero de oarga enpleado en los S. U.V
R-Aqul inolulEcs dlseHo para el tablero de oarga.
(15) TUjQui asadios ae empleon para znsdir In enargla de las Pilas?
H-La major nanera de deterialnar la energfa oosnumlda por la baterla es con
el Vatlcotro de C. B.
Oonfiamos cue la lafbrsaci&a dsda ea oots carta Uenar& todos sue requisites, y si
deseara mas lafonaea, teadrlacos audio gusto ea daraeloa.
Be V, attos. S. 3. ,
to/b.(bho.)
P. B. : golameate podemos inolulr ohora el plan dol tablero de oarga. lo tenfis estfi
imprimifindose y se lo tnandaramon tan pronto eat4 llerto. Vfl.TR..
e star fa dera^a el declrlo pare 'su eoblerno gue ia
Kada a I’0f’or £l 3r* -tiiaon, pare poder vender las
a derechos de inventor:-
50 centavos por Tipoa a-4
90 " .. „ A_6
.20 por 'Jipos . A_0
" ” . S-4 do s pilas
1 descuonty cofcrc ester.
teterfao, dichos derechos
!. o . Mennedy,
Ciat Itlison Iiispano Americana.
Buenoe Aires, R. A.
\V& have your esteemed favor of the 5th ulto..
replying to mins of July l9th in reference to the sale of Edison
Storage Batteries in your territory.
I have taken clue note of what you say about the necessity
of having samples and literature before you could take up the
matter seriously, and do not understand why yOu did not receive cat¬
alogues and descriptive matter, as they certainly were forwarded to
you.
I7e are to-day sending you another complete set under reg¬
istered covers
T might state, however , for your information that I have
just been advised by our President, Mr, Dyer, that he has assigned
the territory covered by Argentine^ Paraguay and Uruguay to Messrs.
Ae®T*.i Cross & Co.,' 11 Broadway, IT, • Tf, I do not know anything about
the arrangements made with the sp people. but feel sure that before
this territory was assigned, a substantial business must have been
guaranteed by them. I would advise' that when this matter was first
taken up regarding the foreign sale of Storage Batteries, my idea
was that a large 'business could be done, and a good profit made,
which would help us in a material way to increase our profits at
the end of the year/ I find, however, that on account of Mr. Ed¬
ison’s Idea to supply these cells to the trade at the lowest poss¬
ible price, tha p 'the discount, namely 20 % which is allowed to the
Irade, is the best discount they could allow up; hence, in handling
that Part of the business, it is sipvply a labor of love. As the
sale Of these batteries increase, undoubtedly the cost of production
wi^.1 be greatly jrpdu'ced,' emdthere is. a possibility trf the future of
■out receiving some profit. Under .t]pe circumstances, therefore, it
: ip just as welt- that they have assigned your territory to other
parties,, as' you .would Peplly be handling the business at a loss.
It will, therefore, be impossible for you to do anything with this
end of the business for the present at least.
Manager* foreign Deplt.
lei
With reference to Ho. 25G66, wo have written you several times, asking
for shipping dates, and in your memorandum of the 4th inst. you advised that shipment
would he made within two weokB. Will you kindly advise ub if shipment is ready? it
is no w over two months since this order was placed with us, which is certainly long
enough. On the strength of your memorandum of Oot. 12th, in which you advised us that
this order would ho delivered within three or four weeks, we wrote our olient that
Bhipmont would he made about 2Iov. 10th. You will understand that it is somewhat an¬
noying to have to write our customer advising him of further delay, in v iew of the
fact that his ordor has been held so long.
Will y.ou kindly advise us definitely when shipment against our orders
Nob. 25712, 25713 and 25719 can he made? These are orders from New York exporters,
and it is absolutely necessary that wo keep thorn advised ae to dates of shipment, in
ordor that they can make proper arrangements for placing same aboard steamer. It is
now over a month sinoe these orders wore placed -with you, and we have had no advice
from you whatever, other than your acknowledgment.
Referring to our memorandum of Nov. 11th, to which we have received no
reply, we again beg to call your attention to our order No. 25720, for shipment to
our representative in Spain, Ur. Arturo Landa. This gentleman, as already advised,
has gone to considerable expense in advertising the Edison Storage Battery, and he
expects to take up the business on a large scale. Naturally, he is anxious to re-
oeive his sample order, in ordor to thoroughly test same. We are particularly a
ioue that this order be executed promptly and would request that you advise ub im¬
mediately what you can do.
162
Wo al90 bey to call your attention to our memorandum of Kov. 14th,
with reference to our order Ho. 25765, for shipment to Hr. Lilian of Havana, Cuba.
We have received no reply to this memorandum. As advised therein, v/e have been re¬
quested by this gentleman's Hew York representative to make shipment immediately,
as he is holding a quantity of merchandise for shipment to Ur. llilian, awaiting re¬
ceipt of our order.
All these orders are from people in remote quarters, and as in every
case remittance has accompanied order, and necessarily a long time must elapse, even
if orders are filled promptly, you will understand that long delays in the execution
of order are- not conducive to friendly relations.
In the case of the New York exporters , who arc our regular customers
for other apparatus, it 1b very annoying to have to repeatedly advise them of delay.
W. SXUYENS.
s/a
229
General counsel t Tice— President, Edison storage Battery co.
Dear Slrs-
Por your oonaideration and comments we beg to jjuote as follows- from a letter
^tsd Hovember 30th and written to ua by Ur. Arturo Leads, Barcelona, Spain* to whom
have recently granted the exclusive agency for the sale of our storage batteries
lh his oountry, Hr.. Lands, in a previoua letter dated August 20th, 1910 (to which
he refers in the following quotation) ashed us to give him the numbers- of' tha patents
obtained by us for protecting our Storage Batteries In Spain. We gave him. the desired
Information to which he answers as follows:-
"PATEHT: As I had advised you la w previous letter, aft or having
carefully examined this matter with Hr. Bonet, nonsuiting engineer, 1 beg to
refer again to this particular, in order to inform you concerning. the same.
In the first plaoe, I beg to advise that the failure to find before
the registry of your patents has been due to the fact that the official' indexes
of the Ministry of Public Development ( "Wnioterlo de pomento”) show the same
under the name of Alta (Thomas) r while we had looked for them under the names
of Edison (T»A . ) and "sooiete Edison". In- which manner other inventions of this
gentleman have been registered,
: (finally, . with reference to the validity of the patents on the Storage
Battery, : thd nitobers of which you. have given mot I beg to advise that in Spain
the Invention J^erAs' ore' fOrr 20-years, but. In order that they may be valid
during all that tin*, it Is abeolutaly-neawwasiy.-that it be officially proved
during the three f^oWing yesro' tha^tfcw^pWteoted Invention Is manufaatureci
In Spanish territory. After thl* thxss«y«BEfr^t«m ^granted by the law elapaee,
the patent is void, ana.- Is-.- oC'ntf account whatever, If it has not been proved be¬
fore the Teohnloa^ GOmtoissloir officially daalggahsd for^tiie purpose that the
patented Invention i» manufactured In Spain., As- 1 believe that yon havo dot
manufactured the Storage Bsttary in our terrttory^ your phtent of Invention has
lost Its validity and, has b*ooa» void..
Bow, onaeopunt of thin, «py cMj^panjtor. any pet eon oould harm you greatl
by taking advantage of1 the jur*#snt naiilfloatlon of the patent that you possess.
l ^ a ***** «T Introduction (which, within one jmt
of »“^“*ttrta8 fw five years) would handicap ^
tl»e business in Spanish territory. Fortunately, bel«« always
8aV° *** **** my. difficulties -and trloke thrt MgS^ur
■ad damage you and the representation you have granted, c*. 1 have . as I faare told
at «aPP i°l ft,r 8,14 oUatnad ,a» Patent of Inirodootiob tor Spain of the
5°8 f 8/?S/W10. ”W* *° tM8“Pat*at I «»«*>» "hat i told you in-ny lett«
. . . I^?u?port °r ^ha explanations I giro shore i am aendin^you a letter
^nst., written by Mr. Bonet, the consulting entffcsMr? which
to9 1901 “2 1903 patents hare become void! Ibegyou to retain
this- letter to ne ae soon «s you hare taken due note of ite oontedts,
,, _ I boilers that I hare done the right thine in this natter, in foliar,*,
S^V^L*0 ^ OHff °f Protecting your inters eta, by ay knowledge of the
08 1 df*“ lt duty t0 alwaj'8 follow this polioy Inf the teiv
Tltory in which 1 represent you." '
WO await your q omenta in this matter, and beg to remain.
fours rery truly.
l^ssSL^fl
Assistant Manager, Foreign Department.
i
B.^XKC . )
272
We quote below from letter received from parjy in New York, with
reference to the nee of Storage Batterlee in connection with submarine boats, -
•iy;e have no doubt that the question of applying your
_ 4. tv6 nubmarine boats has been well considered by you, as the
same ^lays quite an important^art^in }f Si^most of the eUb-
_T . ort-fwo service. and as ^e ara desirous
mnrine boats to the Japanese Bqvy now ^ lM fQr tieir new requirements, such
of making recommendation of effii ci n “ ld ploase forward to us any
tsgsrss — - — - - °* (
same. „nu piaase understand at the present mo-'
.».»*. SS^fS^S--. - - “ - “ —
the way for future inquiries.^ auWlnaB ^ed by the Japanese Kavy arc of Hol¬
land type."
«n ««» - J"” ““»*• “ *“ “ y“r “rl
298
31069
Mr. A. Lespinasse,
American Consul,
Front era, Tab, Mexico.
Dear Sir t-
Xour esteemed favor of the 2pth ult., received.
Complying «lth your request, we have pleasure in forwarding
you under separate Cover, our Storage Battery Catalog and rrice-
list, which you will find fully descriptive. We are also send¬
ing you -a Bmall supply of our printed matter and we Bhould he
pleased to have you distribute same among prospective customers,
in accordance with your suggestion.
Referring to the second paragraph of your letter,
hetr to advice that a email lighting plant to operate 5 -
is net excessive.
... « S-
mend the use of a senerator capable of developing Y. and
volts. The general ” are both develop-
the Diehl Mfg. Company °f Vwouia recommend for
inga line of generators of this .type* ^ators, having a capacity
barging this battery, °“ °, this^generator we would recommend
Of at least 1 K*Y. /or.driving gJ®ft«^e“”eaBon why an equipment
a gas engine of at least 2 H.r. Tn satisfaction. The batteries
of£this- nature should not S^e absolu e sati . atiecharged
can be overcharged o' SithSt sustaining the slightest
Si^^fthey^lo1? $gSfi£ attention of an expert electri-
By referring Jef
j/lifSe prices^oLted in ~ur catalog are
#2-A. J. iespinasee-
Jan. IS, 1911.
f-o»h- Orange, K. J. and we
are cash with order.
make no charge for packing.
Our term
n ^ bee to thank you for the interest you ai
*rderi^ lcatter ana we tl-ust same will^jg to the placing
•e taking
of year-
Thanking you ft
jr same, we keg to remain
S
Yours very trul^y,. ,-J'y
Manager, Foreign Department.
m
I
/
EDISON STORAGE RAT TiiffiY CO,
'7
V .Tan. 15-1917.,
i»
In the future, v/hen delivering our shipnints to Hr.
Riley of the Shipping Department, Hat . Phono. Co., fcindlv instruct
your messenger to inquire from Hr. Riley which car is intended for
the Foreign Department , arid Hr. Riley win. in turn instruct your
messenger where to place the oases.
Mr. Riley complains that at times your messenger delivers
cases over there, leaving them on any par t of the platfu.-.i. o:r in
Mr,- Riley's Office, and no .-.•union in made as to whom the so cases
ar* intended for.
In order to eliminate any .future misunderstand i ng on
this subject, v:e would request that in i-he future you have you r
messenger deliver these cases to Hr. Riley as mentioned i.-.d
as soon as delivery in made , have your Packing Depur talent deliver
to our Traffic Department here in the office, a copy of your Shipping
Ticket showing .last how many cases are forwarded,' together with
gross weight aiid measurements, together with gross weight of each
case^
Two copies of this list are to he forwarded to the
Foreign Department Office, at the same time.
Trusting this mat in 7’ is entirely clear to you, we remain,
FOREIGN DEPARTMENT,
335
31723-21477 , | Jan* 24, 1911
fib
EPISOH SIOfiAGE BATiEEB*
Mr. Bee.
/ Jl
mi comp&k/.
We are in receipt of a communication from Mr.
Artburo Landa , your representative in Spain, who seems very
enthusiastic over the exploitation of the Storage Battery in
Spain. He is in communication with the Beaeral Storage Battery
- Car Company with reference to representing them, and has also
communicated with a numbpr of carriage manufacturers, among them
the Anderson and Lansden, as well ce the Bailey, people.
The -commercial trucks of the lansden Company seem to
answer his requirements , although he regards the price as rather
high* ®h« Bailey and Anderson pleasure vehicles, however, do not
seem to answer hie requirements. The demand in Spain seems to
he for four-aeated pleasure vehicles, ana Mr. landa has taken
the matter up with the Bailey ana Anderson people, hut without
satisfactory results. He mentions the four -passenger brougham
made by the Anderson people, but he advisee that people in Spain
would not consent to have the ohauffeur inside with the passengers
He is, therefore, taking a trip to Paris with the idea of taking
the matter up with automobile manufacturers there. He will take
up with thenj the matter of manufacturing a special type designed
for fiie Edison Storage battery, end with special reference for the
requirements of the Spanish people.
Have you any comment? to make regarding thin matter.
!Dhe American Consulate
Saloniki , Turkey.-
Bear Sir
Ukr-nimh tie Department of Commerce & huh or we learn
of the interest in your territory in 0 inn its lines , carriages, vehicles,
etc. ana accordingly we have pleasure in forwarding you under separ*
registered cover our Storage Battery Catalogs, together with a nurcVe
of catalogs issued ty concerns manufacturing vehicles for equipment
with our batteries. You will find those catalogs fully descriptive
and we stand ready to furnish any information upon request. Je should
hi- glad to have you bring these to the attention of interested parties
and assure them, that we shall he glad to give them any details re¬
quired .
7,’c hope these ‘catalogs will lead to further correspor.d-
ence.and that we may eventually connect ourselves with some concern
in your territory.
,7e heg to thank you in advance for any courtesy you
may extend us in this matter., and remain
Yours very 1rul^f-
486
lu^f ' lands'* letter which ws reotmtly resolved, is again
beings np the matter of credit -and neko ns to advise him definitely regarding
ease- With rafarune^ ^^iresto, pla&se note that we wrote hhn on -Sept . 19th as
fonowoi—
"EDhs list prices on Edison Batteries are shown in our
catalogue, and in r -the arr^sgaments we have cade -with yon, wo should be
plonsod to allow y^, extreme discount, namely, 20jS from the list price, and
if cash accompanied ~ or you open a credit in Hew York against Which wo oan
drew, we should "be M>j^d to allow you an additional 2$ discount for cash, is
we know nothing regarding your financial responsibility, ws would ask
yon to kindly send u, .quittance o^erlag your ordsrs; or you may, if you prefer,
glwe ua references^ your f inaocial responsibility and if upon investigation,
wo find that you ara '"T^i-tlad to credit, we should bo pleased to execute your
orders, allowing y^ ^grs from &&to of invoice.''
j^t(r , tuifler date of Dot. 19th, we wrote him as follows, -
"With regard to the matter of your financial responsi¬
bility, we beg to _ tiat we ar® making a number of inquiries and are awaiting
replies. We are Bu^^pwrever, that wb shall hear favorably; but meanwhile, you
understand that our options will have to he on a each basis until auoh time
as we are definitely T^of®811* Ws appreolatB your oapder in this matter and
understand your hOMtiVt- We ahull 158 pleased to advise yon immediately we are
assured."
f^rerB888 4c 41li# matter, I hand you herewith a number
of reports we havg reg^aing Ur. Lands’ 8 responsibility. Will you
kindly advise me r«fr)rifp& 41118 ant4®?. In order that I may reply to. his letter
at an early date?
& ^ ujiuDian, numberih*
seme 32749. to ln*
Kr. Abraham Signers,
Empress General ae Transposes,
Correo Apartedo 4SZ, time, Peru.
Dear Sir:-
at « r" fCTOr »*
beg to advise 'tust-the -Jale^o-f qiL.*®4 rBI’ly thereto
Is controlled by Messrs. W. af Oraoe^cf5^^^-*8 lr Peru
your communication to them for attention 4 We„We «J® ^ referring
complete Information with reference tr* ^Tlng theffl
^111 write you ^2£m33J!° “* 110 d0nbt «*V
Batter j«r - onr borage
order we 'remain ° * " 1wl'1 -pvor the shove with your
lours very truly.
Manager', foreign Department.
NATIONAL PHONOGRAPH COMPANY RECORDS
FINANCIAL RECORDS
These records consist of bound ledgers and journals and unbound
statements. Some of the entries in the ledgers and journals pertain to accounts
with other Edison companies, including the Edison Manufacturing Co., Edison
Phonograph Co., Edison Phonograph Works, New Jersey Patent Co., and Ott
Manufacturing Co. Also included are accounts with the National Phonograph
Co., Ltd., in London; the Compagnie Frangaise du Phonographe Edison in
Paris; and the Edison Gesellschaft in Berlin. The records are arranged in the
following groups: (1) statements (1900-1911); (2) state and federal filings
(1905-1910); (3) general ledgers (1899-1911); and (4) journals (1903-1911).
Many of the entries in the first general ledger and in Journal #2 are written in
faint green ink and may be difficult to read. Among the items not selected are
three Foreign Department books (1905-1908) containing bills of lading; twenty-
five cash books (1896-1911); and journals and ledgers for individual or
specialized accounts.
Statements (1900-1911)
These loose pages consist of profit and loss reports and otherannual statements forthe years
ending March 1900 through March 1911. The twelve profit and loss reports provide summaries of
costs, sales revenues, and inventories at the end of each accounting period. Other statements
provide information regarding foreign costs and sales revenues, as well as labor and otherexpenses.
Included are statements from the Foreign Department for the years ending March 1 , 1904, and March
1 , 1 905; a statement from the Chicago branch for the year ending March 1 , 1 904; and a "Summary
of European Business for 1906."
State and Federal Filings (1905-1910)
These loose pages consist of annual statements filed with the federal Census of Manufactures
(1905, 1 909), the New Jersey Bureau of Statistics (1905, 1 907, 1 909-1 910), and the Internal Revenue
Service (1909-1910). They provide information regarding capital stock, income, labor, and expenses.
Included with the I.R.S. statement for 1910 is a typewritten statement of income and expenses, along
with handwritten notes and calculations.
General Ledger (1899-1907)
This ledger covers the period February 1899-February 1907. As the account book of final
entry, it summarizes transactions relating to the distribution and sale of phonographs and records.
There are stock, cash, general expense, capital, and other accounts, including accounts for offices
in Berlin, Brussels, Paris, London, and New York.
General Ledger (1907-1911)
This ledger covers the period February 1907-March 191 1 . As the account book of final entry
it summarizes transactions relating to the distribution and sale of phonographs and records. There
are stock, cash, general expense, capital, and other accounts, including accounts with the Foreign
Department and one account called "Film Plant."
Journal #2 (1903-1906)
This journal covers the period March 1903-February 1906. Chronological entries provide
information about transactions posted to various accounts and recorded in the general ledgers.
Journal #3 (1906-1911)
This journal covers the period March 1906-February 1911. Chronological entries provide
information about transactions posted to various accounts and recorded in the general ledgers.
FINANCIAL RECORDS NOT SELECTED
Cash Books (1899-1911)
These twenty-five books contain chronological entries pertaining to transactions posted to
the cash accounts of NPCo. Seven books relate to the cash disbursements of the New York
recording studio under the direction of Walter H. Miller and include payments to musicians and
other recording artists. The remaining books list a variety of disbursements, mostly from the main
office in West Orange. Included are entries concerning the business of the Bates Numbering
Machine Co., Edison Manufacturing Co., Edison Phonograph Works, and Mexican National
Phonograph Co.
Investment Ledgers (1900-1911)
These two ledgers cover the periods March 1900-July 1907 and March 1907-February
1911. They contain the following accounts: "Automobile"; "Aylsworth Record Plant"; "Duplicating
Plant"; "Foreign Furniture and Fixtures"; "Foreign Record Plant"; "Furniture and Fixtures";
"Machinery and Tools"; "Moulded Record Plant"; "Musical Record Plant"; "Real Estate and
Buildings"; and "Record Plant." Transactions posted to these accounts include the details of labor
and expenses, as well as remittances to other Edison companies. This information is abstracted
in the general ledgers.
Private Ledger and Private Journal (1903-1911)
These two volumes cover the period February 1 903-February 1911 and largely duplicate
the information found in the general ledgers and journals. They contain the following accounts:
"Edison"; "Foreign Records"; "General Ledger"; "National Phono Co., Paris"; "National Phono Co.,
Berlin"; "National Phono Co., Brussels"; "National Phono Co., Wax"; "Nathan C. Horton
Embezzlement"; "New Jersey Patent Co."; "N.Y. Phono Co. Settlement"; "Profit and Loss";
"Reserve Account"; and "Special Notes Received."
Foreign Department Bills of Lading (1905-1908)
These three volumes cover the periods October 1905-July 1907 and March-May 1908.
They contain letterbook copies of bills of lading prepared by the Foreign Department. The bills in
the first book itemize shipments made to the National Phonograph Co. of Australia, Ltd., including
the consignments of October 1905, which established the Australian company's trade. This book
contains a number of credit memoranda in addition to the bills of lading. The other two books
contain bills for goods shipped to customers or dealers in Australia, Africa, Asia, South America,
parts of Europe, and the Caribbean, as well as for goods shipped in agreement with commission
houses in New York, Newark, and Great Britain to customers abroad. Also included are shipments
to the Mexican National Phonograph Co. and the Compania Edison Hispano Americana in
Argentina. In addition to phonographs, phonograph parts, and cylinder records, the shipments
include motion picture films, projecting kinetoscopes, primary batteries, fan motors, Bates
numbering machines, and printed matter. Individual phonographs are listed on the bills by number,
and motion picture films are specified by title. Numerals, which probably indicate invoice numbers,
have been written on each bill, and the bills have all been initialed by an accountant or auditor.
William E. Gilmore Ledger (1906-1912)
This book covers the period October 1906-March 1912. It includes a “distribution account"
and accounts in the names of various individuals. The front cover is labeled "Personal Property
of W. E. Gilmore."
Payroll Book (1906-1911)
This book covers the period December 1906-February 1911 and contains weekly entries
providing the names of individual employees and their pay. The entries are arranged according
to the following categories: "Orange Office"; "New York"; "New York Comml Dept"; "Chicago
Comm'l Dept"; "Comml Depts"; and "Paid by Check."
Salesmen's Record (1909-1912)
This volume covers the period September 1909-June 1912. Included are entries for
individual company salesmen, giving a chronological record of their productivity. The salesmen
include A. H. Curry and C. E. Lyons, both of whom later joined the executive staff of Thomas A.
Edison, Inc. A loose item inserted into the front cover reads "National Phonograph Co Salesmen
Record."
National Phonograph Company Records
Statements (1900-1911)
These loose pages consist of profit and loss reports and other annual
statements for the years ending March 1900 through March 1911. The twelve
profit and loss reports provide summaries of costs, sales revenues, and
inventories at the end of each accounting period. Other statements provide
information regarding foreign costs and sales revenues, as well as labor and
other expenses. Included are statements from the Foreign Department for the
years ending March 1 , 1 904, and March 1 , 1 905; a statement from the Chicago
branch for the year ending March 1 , 1 904; and a "Summary of European
Business for 1906."
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National Phonograph Company Records
State and Federal Filings (1905-1910)
These loose pages consist of annual statements filed with the federal
Census of Manufactures (1905,1909), the New Jersey Bureau of Statistics
(1 905, 1 907 , 1 909-1 91 0), and the Internal Revenue Service (1 909-1 910). They
provide information regarding capital stock, income, labor, and expenses.
Included with the I.R.S. statement for 1910 is a typewritten statement of income
and expenses, along with handwritten notes and calculations.
FEDERAL CENSUS OF MANUFACTURERS
Department of Commerce and Lain
Bureau of the Census
(E 96-165)
CENSUS OF MANUFACTURERS, 1905
General Schedule
Name of establishment National Phonograph Go. _
Name of corporation, firm, or individual owner _
/State New Jersey _ County Essex _
Location of factoryiOity or town _ Street and No. _
hPost Office _
General Office at _
iManufacturing establishments operated by the same corporation, firj),or
individual, and located in different counties, cities or towns, must be
separate^ reported.)
. . - . - . .
Washington, D.C., January 3,1905.
Under the Act of Congress approved March 6, 1902, the Bureau of the Census
is charged with the duty of making a collection of the statistics of
manufacturers in the year 1905. The nature of the statistics and the
method of collecting them are regulated by the provisions of this act
and of the Act of March 3> 1899.
The canvass is to be made under the supervision of W. M. Steuart,
Chief Statistician for Manufacturers
The information returned on this schedule should cover the business
year of the establishment most nearly conforming to the year ending
December 31, 1904.
ALL ANSWERS 7/ILL BE HELD ABSOLUTELY CONFIDENTIAL . No publication
will be made in the Census reports disclosing the names or operations of
individual establishments in any particular, AND THE INFORMATION WILL BE
USED ONLY FOR THE STATISTICAL PURPOSES FOR 'WHICH IT WAS GIVEN.
If mining or other business is carried on in connection with
manufacturing, the capital, employees, wageB, expenses, products, etc.,
reported must pertain only to manufacturing.
S. N. D. NORTH,
Director of the census.
Extract from Act of Congress, March 3, 1899:
Section 22.-... "And every president, treasurer, secretary, director, agent,
or other officer of every corporation, and every establishment of product¬
ive industry, whether conducted as a corporate body, limited liability
company, or by private individuals, from which answers to any of the
schedules, inquiries, or statistical interrogatories provided for by this
Act or herein required, who shall, if thereto requested by the Director-,
supervisor, enumerator, or special agent , willfully neglect or refuse to
give true and complete answers to any inquiries authorized by this act, or
shall willfully give false information, shall be guilty of a misdemeanor,
and upon conviction thereof shall be fined not exceeding ten thousand
dollars, to-which may be added imprisonment for a period not exceeding
one year. "
CERTIFICATE.
This is to certify that the information contained in this schedule is
complete and correct to the best of my knowledge and belief, and covers
the period from - t _ ,190>3 f to-SLe*. ^ sfo
(2)
,190
Signature of Special Agent.)
"(Signature of the pe
04 _
rson furnishing the
Information. )
All entries must he made clearly and neatly in ink. Amounts and values
must he obtained from hook accounts, if such accounts are available.
Each question i s to he answered. If any question is found not applicable
and no amounts are reported, write the word "None" Do not duplicate
any item of expense.
1',. CHARACTER OE ORGANIZATION : Designate the form of organization, as it
existed on the last day of the period covered by the report, whether
individual, firm, limited partnership, cooperative association , incorporated
company, or some other form.
Incorporat ed Company
2. CHARACTER OE INDUSTRY: Specify the kind of goods manufactured, as, for
example, cut nails, chairs, leather belting, men's clothing; ofc the kind
of work done, as, for example, job printing, machin e shop work. Return with
the schedule a card or other printed matter describing the business.
3. CAPITAL INVESTED— OWNED AND BORRO’MED: The an s-^ must show the total
amount of capital, both owned and borrowed. All the items of fixed and
live capital may be taken at the anounts carried on the books. If land
or buildings are rented, that fact should be stated and no valued given.
If a part of the land or buildings is owned, the remainder being rented,
the fact should be std; ed aid only the value of the owned property given.
The vaL ue of all items of live capital, bills receivable, unsettled
ledger accounts, materials on hand, stock in process of manufaj ture,
finished products and cash on hand, etc., should be given as of the last
day of the business year reported.
Land-
& j g ^ (a ct *5 O
Buildings
Machinery, tools, and implements
Bills receivable, unsettled ledger accounts, raw
materials, stock in process of manufacture, finished
products and cash on hand, and other sundries -
Total capital -
4. Proprietors and firm members: Men, numb er_ < Women, No. - -
Give the number of proprietors aid firm members, including both active
and silent partners. Do . not include stockholders of corporations.
(3)
5. SALARIED EMPLOYEES :
Total amount
paid in salaries
during the year
Salaried officers of corporations -
Superintendent s, managers, foreman, clerks
ahd other salaried employee's:
-I—
6. Wage-earners, including pieceworkers:
Do not include salaried employees
reported above.
Greatest
ITo. employji
ed at any
one time
Iduring thel
brear .
least Ho. Total amount
^employed [paid in wages
'p.t any 'during year,
one | time j
Muring i
phe jyear J
Men 16 years and over -
Women 16 years and over--
Children under 16 years--
. SSO
-iLcrk'^.
._3_4a..
,J--L%.Lt93.2X
.$2dU
Salaries and wages should include board or rent furnished as part com¬
pensation. Foreman receiving wages and performing work similar to th&t
of the men over whom they have charge are to be reported as wage-earners.
If books do not show the separate amount of wages paid to men, women
and children, apportion the total wages for the year upon the basis of
an average pay roll. Amounts paid for contract work, if not done by
the Regular employees, must not be included here, but reported in
answer to inquiry 8.
7. AVERAGE NUMBER ■ OF WAGE ^EARNERS? INCLUDING PIECEWORKERS , EMPLOYED
DURING EACH MONTH: Do not include proprietors and firm members, or
salaried officers, superintendent s,managers, foremen, or clerks.
Month
men 16
years and
oarer
Woman 16
years i
& over
Child renT_lf
under l'6 Month
years- r
'Men 16
years &
over
V/omen 16
years &
■over-;
Children
under 16
years
January^6
l> ±0
444-
_ L1.J .
March >f „a
‘3 cj h
i'll
Sept ember iv M V
—
April,
..
iiio
October
. . . M-Vo
i 44
May
_ iit-O-J _
1 'SJ _ _
_N o vembe r 4- ft •V
. _ 115-
.
_ ihS.4. _
_ LtZ _ |
1 4 3
(4)
8. MISCELLANEOUS EXPENSES: A3] items of expense incident to the business
not accounted for under inquiries 5,6 and 9 must be reported here.
ITEM _ _ _ _ _ _ AMOUNT.
Amount paid for
rent of factory or works, if any -
Amount paid for
taxes, not including interna] revenue -
| - !la
Amount paid for rent of offices and buildings other
than the factory or works, and for interest, insurance,
interna] revenue tax, ordinary repairs of buildings
and machinery, advertising, travelling expenses, and
a]] other sundry expenses not reported under the head . . . _ r
of materials- . . . . A - i tJt.-- ±~-°- A 4. _7. _ _ .
Total miscellaneous expenses - _"L.
Amount paid, if any, for contract work - §--- - ■*—
9. MATERIALS USED: The cost of a]] materials used during the year must be
reported. If the establishment pays freight on any of the materials used,
and the amount is not included in their cost, report the amount of this
freight under "Amount of freight, if any, paid on the above."
KIND
Used in raw state: Give the name and the cost of such
materials as raw cotton, iron ore, etc., that have
undergone no process of manufacture.
COST
_ _ ::::::::::::::::: j
Used in partially manufactured form: Include materials
that have passed through some process of manufacture,
such as pig iron, steel , 1 eather, etc . Give the name
and cost of the principal articles.
_ CU&=d?r— _ _ 1 _ _ _ 4
Is o. •d"'?
jj -~s> - 7__
- . . . i . . ::::::::: : \
\ — - - -
Fuel \
r — —
Mill Supplies: Give the cost of lubricants, waste and
other supplies consumed in the running of machinery*-—— — £
All other material s- - - - - _ _ |
_ £ _ £_§£,_•_ scZ__
Total cost of all materials - - 1
L -1 _Ax._4.-_
Amount of freight, if any, paid on the above, not .
included in the cost - - - $ _ Lf- _
10. PRODUCTS: Give the total value or price at the factory or works and
account for all products manufactured during the year, including by-products.
The principal products should be separately enumerated and the total value
given for each. If there are products other than those for which separate
values can be given, they should be enumerated so far as possible and
their total value reported under "All other products". The amount
received for odd jobs must be given as "custom work and repairing."
_ _ _ _ _ I, _ _
_ _ $ _
All other products
Amount received for custom workfancf repairing ““ ft
Total value of all products _ _ _ _ _ __ I aT iT~-> g 75- /
■WEEK DURING vklGH THE LARGE ST_ NUMRR^OE ’ PER SOT S^WA S^MPIOYED^ Eo r^we elf
ending l^-, .2b? /Qa . 1904. Distribute employees according to
actual earnings /(not rates) for one week only. If period of payment
includes two weeks, or any time other than one week, reduce the payroll
to a weekly basis before entering the figures for this inquiry. Do.-. .• ■
not include proprietors, firm members, officials, superintendents,
managers, foremen, or clerks
EARNINGS PER WEEK.
Under .j?3 per week _
and over, but under $4.
and over, but under S5_^
and over but under ©6 _
and over, but under ©7 _
and over1 but under 558 _
and over but under 558 _
and over but under 810_
and over but under |12
and over but under S15
$15 and over but under 320
820 and over but under $25
825 and over _ _ _ _
Total Number _ LL~t / Lt (,
Total wages for the week T/TA H-9-ih,x9
12. TIME THE EACT0H5T WAS IN OPERATION:
Number of days in operation during the year _
Number of hours per day (under normal conditions)
Number of hours per week(under normal conditions
Extra time during the year, total number of hours
13. POTOR:
Number Total
a. Power owned-
Engines: Steam
Gas and gasoline
7/at e r wheels I
7/ater motors
Electric motorstrun by current generated by
establishment reporting)
Other power( Specify kind)
b. Power rented to other establishments, if any
Horsepower
c. Power rented from other establishments, if any-
Electric power-Number of motors, _ L> ; total horsepower
of motors _ > o ~) _
Other power-Kind. _ _ _ Horsepower)
Name and address of establishment supplying the power_
[KKI-265]
NEW JERSEY BUREAU OF STATISTICS
1905, 1907, 1909-1910
DUPLICATE SHEET, TO BE RETAINED BY YOU.
ANSWERS FOR THE YEAR ENDING DECEMBER 31, 1907,
the Last FINANCIAL YEAR, Ending' in 1907, for this Establishment
DUPLICATE SHEET, TO BE RE .‘AINED BY YOU.
ANSWERS FOR THE YEAR ENDING DECEMBER 31, 1909,
r the Last FINANCIAL YEAR, Ending in 1909, for this Establishment,
RETURN OF ANNUAL NET INCOME
1909 AND 1910
U. S. INTERNAL REVENUE. j
RETURN OF
ANNUAL NET INCOME.
(See. 38, Act of Congress, August 5, 1000.)
MANUFACTURING CORPORATIONS!.
Return o£ net income received during ^he
'i
n corporation, the principal placo of business
of which is located at . ....
in tho State of . ' .
RETURN OF ANNUAL NET INCOME
RETURN OF ANNUAL NET INCOME.
12/31/10
NATIONAL PHONOGRAPH COMPANY
Statement, of Income and, Expenses - year 1910.
Sales 19o$ 3/l/09 to 2/28/10 3989961.60
Costs " " " " 2330325.27 1669636.23 Act
Sales Mar. Dec./09 3279669.31
Costs " " at 53 $ 1738171'. 73 1541397758 Est
" ’ TTBH3B7H5'
Sales 1910 Mar. l/lO to 12/si/, 2966757. 88
Costs " at 65$ 1780054773 1186703.15
- - ' lBwrasi.ue
15$ Allowances 1909 176939.87
In 1909 Beport 170100.71
6839.16
15$ Allowances 1910 176939.87
-1- - , - - 183779.03
BOyalty ,pd 1909 2/28/
09 to 2/28/10 - 306514.02
less in 1909 Beport ,
EBt 3/1/09 to 12/5l/g. 421559.30
115046.28
Add 1910 ,Est. 3/l/l0
to 12731/10 - 180514.92
Interest received
Sales Wagon revenue
Interest received
Unclaimed Wages
Profit Foreign Dept.
65269.64
2881.12
4248.00
(a) 30452.88
200.22
120820.47
Expenses 1909 3/l/09
to 2/28/10 - 1231224.69
Expenses MAr.Dee.’og 921275.95
309960.74
1214495.82
944137.76
8065.10
2475.19
jrttiio jjaouy. 765.99
Brussells Faoty. 122.50
Int. Bee ev. 1909 report
now added to expense 3693.91
Int. Beod. taken out of
expense - ■ — (a)30462.88
12 99664'! 07“
, "1910 3/1/10 to
12/3l/l0 -
labor Experimental
Painting 6th Ave.
Dess Taxes 5018.62
Int. Pd - 8619.10
13637.72
1286026.35
Dosses 1909 Bad Debts
2/28/10 - p 2303.20
" " " 17403.42
N.Y. Phono. 467500.00
_ ~5575o5TS2~
In Beport 1909-02&/09 456538.29
- 30668. 33
Beoove red, deduct Divi
on Tex. Piano a/o 2045.18 28623.16
Depreciation l/l/09 -
2/28/09 - - - - -
Depreciation 3/1/09 -
2/28/10 .
Dep. -10 mo s. 1910 -
6976.74
43698.49
35927.64
5.3646. T9
47284.01
Interest Paid
laxes "
60930.60
8619.10
5018.62
174722.00
stUfi Au^-o ! huju. *.A.
Z3t,vqt*- 77
'/or 0-3- %&<£ 73$.
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National Phonograph Company Records
General Ledger (1899-1907)
This ledger covers the period February 1899-February 1907. As the
account book of final entry, it summarizes transactions relating to the distribution
and sale of phonographs and records. There are stock, cash, general expense,
capital, and other accounts, including accounts for offices in Berlin, Brussels,
Paris, London, and New York. The spine is stamped "87" and "General Ledger
No.1 N.P.Co." It is labeled "Feby 28th 1899 to Feby 28th 1907." The book
contains 401 numbered pages and an index; many pages are blank.
[REDUCTION RATIO = 16:1]
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Wojtek Szymkowiak
Matthew Wosniak
Thomas A. Edison Papers
at
Rutgers, The State University
endorsed by
National Historical Publications and Records Commission
18 June 1981
Copyright © 1999 by Rutgers, The State University
All rights reserved. No part of this publication including any portion or the guide and index or of
the microfilm may be reproduced, stored in a retrieval system, or transmitted in any form by any
means — graphic, electronic, mechanical, or chemical, includingphotocopying, recordingor taping,
or information storage and retrieval systems— without written permission of Rutgers, The State
University, New Brunswick, New Jersey.
The original documents in this edition are from the archives at the Edison National Historic Site
at West Orange, New Jersey.
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A SELECTIVE MICROFILM EDITION
PART IV
(1899-1910)
Thomas E. Jeffrey
Lisa Gitelman
Gregory Jankunis
David W. Hutchings
Leslie Fields
Theresa M. Coltins
Gregory Field
Aldo E. Salerno
Karen A. Detig
Lorie Stock
Robert Rosenberg
Director and Editor
Sponsors
Rutgers, The State University Of New Jersey
National Park Service, Edison National Historic Site
New Jersey Historical Commission
Smithsonian Institution
University Publications of America
Bethesda, MD
1999
Edison signature used with permission of McGraw-Edison Compan
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